Closure of Multiple Factories in Illinois
So far this year there has been announcements from a total of four factories in Illinois that will now close their doors. Due to this, there will be more than 1,000 employees at risk of losing their current jobs. There are multiple reasons as to why this issue is happening of these factories now having to permanently close, they include:
- Manufacturing costs.
- Revenue losses.
- Need to relocate operations.
Now, the four Illinois factories that have already announced or have already put into action the mass layoffs since January this year, are the following companies:
- Quaker Oats Company.
- Bloomer Chocolate Company.
- Rivian Company.
- Monterey Mushrooms Company.
Quaker Oats Company Closure and Layoffs
The Quaker Oats Company announced that they were permanently closing their facility in Danville, Illinois. Subsequently, due to their closure, they will layoff about 510 workers as they move their operations to other factories and locations. However, the original facility needed modernization and enhancement, which would require for it to be closed for an extended period of time. Now, the company opted to move production to another facility instead to carrying out the necessary changes that the facility need. The company also stated the following:
We do not make this decision lightly and recognize the impact it will have on our employees, their families, and the Danville community. We have notified our workforce and are working closely with our employees and local community officials to provide a supportive transition.
Bloomer Chocolate Company Closure and Layoffs
On the other hand, the other Illinois factory that will close it doors also causing a mass layoffs is Bloomer Chocolate Company. They notified their closure news in late March to state officials about their factory located in Chicago’s Fulton River District. Consecutively, resulting in 226 job losses as of May 31, from this facility.
Their decision of their closure is because of the location and age of the of the facility also because of the increasing repair and maintenance of the building. As well as now the equipment has elevated operating costs and it has now production reliability issues, according to the factory. Senior Vice President of the facility said,
They’ve taken the news as we have very hard in the sense that we’ve all been so committed. And while we don’t want this day to come, it’s a sad day, but it’s also a part of the future.
‘Rivian’ Electric Car Manufacturer Closure and Layoffs
In February, the electric car manufacturer Rivian also announced their closure and that as of result of this there will be 100 layoffs for workers at its assembly plant in Normal this year. The company has experienced many losses in this company, they reported a loss of $1.5 billion in the fourth quarter of last year compared to a loss of $1.7 billion during the exact same time period of 2022.
Furthermore, the company facing many economic challenges is what led to their decision to close their doors. The founder and chief executive R.J. Scaringe wrote an email to the staff stating,
Our business is facing a challenging macroeconomic environment including historically high interest rates and geopolitical uncertainty and we need to make purposeful changes now to ensure our promising future.
Monterey Mushrooms Company Closure and Layoffs
Last, but not least, Monterey Mushrooms Company made their announcement in November 2023 about closing their farm in Bureau County in January. In fact, they also closed down their facility in Florida at the same time. However, the one in Illinois, laid off 100 workers in total. They stated that they have been facing many different challenges that created a roadblock for the company to keep producing. The obstacles that the company cited as significant challenges, including:
- The global pandemic.
- Weather impacts.
- Inflation.
- Changes in market behavior.
The Impact of Layoffs due to Factory Closures in Illinois
The many challenges that each factory faced independently of one another is what pushed each company to close their doors from further production. In fact, according the St. Louis Federal Bank, “the number of people employed in manufacturing jobs in Illinois has significantly decreased since the 1990s.
In February 1990, an estimated 927,300 people were employed in manufacturing roles, when data collection by the U.S. Bureau of Labor Statistics began. In February 2024, that number stands at just over half a million, at 581,000.” Meaning and showing that there has been a significant and drastic decrease in the amount of workers that the facilities maintain working for long-term production now in the present compared to back then.
Written by Jeanette Sanchez
Sources:
Newsweek: Illinois Hit Mass Layoffs as Four Factories Close
WSWS: Danville, Illinois Quaker Oats plant to close, laying off over 500 workers
CBS News: Bloomer Chocolate laying off more than 200 workers in Chicago with plant closure
Newsweek: Mass Layoffs Map Shows States Worst Hit This Year
TeslaRati: Rivian schedules Normal Factory shutdown in April
Wirepoints: Four more Illinois factories close: Lawmakers fiddle as cities burn
Featured Image Courtesy of Matt Flickr Page-Creative Commons License
Inset Image Courtesy of Alpha Photo Flickr Page-Creative Commons License
