Factory fallout: Manufacturing plant closures and layoffs from Frito-Lay, Spirit AeroSystems, Blue Diamond, and more
With political winds changing and global markets tightening, manufacturers are making tough decisions—and workers are feeling the impact. In this roundup, we chronicle the closures and cutbacks reverberating throughout the manufacturing sector. As uncertainty becomes the new normal, we examine how businesses and workers alike are navigating a rapidly changing industrial landscape.
According to Twin Cities Business, J&E Companies, a precision machining and fabrication company based in Plymouth, is closing all its Minnesota locations. The closures have resulted in the layoffs of approximately 145 employees—about 45 in Lakeville, 70 at the Plymouth headquarters, and 30 in Shakopee. The layoffs began on June 2, with some employees potentially retained “for a limited period of time.”
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According to The Sacramento Bee, Blue Diamond Growers, a Sacramento-based almond cooperative, will shut down its historic midtown Sacramento plant over the next two years, impacting approximately 600 employees. Operations will shift to facilities in Turlock and Salida as part of an effort to streamline manufacturing and reduce inefficiencies. In a recent quote, President and CEO Kai Bockmann said, “The challenges of running a plant from these historical buildings has become too costly and inefficient. Streamlining our manufacturing plants is the right business move to further strengthen our market-leading position and bring increased value to our grower members.” Layoffs will occur in phases, with about 10% of workers affected later this year, and severance and transition support will be offered.
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According to the FDL Reporter, military vehicle manufacturer Oshkosh Corporation has initiated temporary three-month layoffs for 51 union employees in response to overstaffing tied to a planned drawdown in Joint Light Tactical Vehicle production. The voluntary layoffs, running from May 26 to August 25, allow affected workers to take an unpaid leave with continued benefits and job security upon return. No permanent job losses were announced by either Oshkosh Corporation or UAW Local 578. The company’s decision comes amid a decline in first-quarter net income, falling from $179.4 million last year to $112.2 million this year.
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According to KWCH 12 News, aircraft parts manufacturer Spirit AeroSystems will continue furloughs into July for employees working on Boeing 737 programs. Initially, up to 350 workers were furloughed starting May 12 due to a production backlog in Wichita, with a return expected by mid-June. However, the company has extended the timeline, and a different group of employees will now be furloughed from June 9 through July 7 as Spirit adjusts its production schedule and inventory levels.
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According to East Bay Times, snack food manufacturer Frito-Lay has shut down production operations at its Rancho Cucamonga facility, where Flamin’ Hot Cheetos were first produced nearly 35 years ago. Employees at the plant, located at 9535 Archibald Avenue, were informed on June 9 that the site had produced its final batch of Cheetos, Tostitos, Doritos, and Funyuns. Although warehouse, distribution, and transportation functions will continue at the location, laid-off workers reported receiving 10 weeks of severance pay. In a recent quote, Chief Executive Officer Ramon Laguarta said, “more volatility and uncertainty, particularly related to global trade developments,” is expected, and the company is focused on “right-sizing the cost” of its snack operations.
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