AM I NEXT? NO LOVE AT MONDI USA

Atlanta, Georgia-based Mondi Bags USA, a subsidiary of international packaging manufacturer Vienna, Austria-based Mondi Group and a manufacturer of paper-related packaging for the feed, food, and specialty chemicals, will close its Louisville, Kentucky plant lay off all 100+ employees. The plant, in operation since 1957, was acquired for $105 million in 2014 from Graphic Packaging International Inc., a wholly owned subsidiary of Graphic Packaging Holding Company.

According to a Mondi spokesperson, "Mondi has entered into discussions around the proposal to cease production at this plant by the end of 2018. Louisville produces woven polypropylene industrial bags for the agricultural feed, pet, food and specialty chemical industries. Its product portfolio is not a core part of our business and the plant is no longer sustainable. We have explored all options for the future of the plant. We have concluded this decision is necessary to ensure the long-term success of Mondi North America’s core industrial bags business. Mondi understands the impact of this decision on those affected and will treat employees fairly during this difficult time."

It can happen to anyone, anytime, anywhere ... are you wondering, Am I Next?

AM I NEXT? GENERAL MOTORS TO LAYOFF 14,000 EMPLOYEES, SHUT DOWN SEVERAL PLANTS (08/20/24)

AUGUST 20, 2024 — 1,000 EMPLOYEES TARGETED

The company confirmed there will be layoffs in its software and services division.

Approximately 1,000 employees, including approximately 600 employees at the company’s headquarters in Detroit, are targeted.

According to a company spokesperson, “As we build GM’s future, we must simplify for speed and excellence, make bold choices, and prioritize the investments that will have the greatest impact. As a result, we’re reducing certain teams within the Software and Services organization.”

This is the opening move of the two recently hired former Apple executives who now head the company’s software and services division.

AUGUST 26, 2023 — CHANDLER, ARIZONA FACILITY CLOSURE

The company has announced that it will be closing its Chandler, Arizona Information Technology Innovation Center and laying off 936 employees when the facility closes on October 31, 2023.

According to a company spokesperson, “As part of GM’s continued transformation, and to better align our Innovation Center footprint and IT resources in the US, we have made the decision to cease our IT operation at our Chandler, AZ, Innovation Center later this year. Employees working in our software-defined vehicle teams will remain in AZ. Affected employees will have an opportunity to apply for open positions.”

MAY 3, 2023 — SEVERAL HUNDRED CONTRACT EMPLOYEES GONE

The company is continuing its cost-cutting initiative with the announcement that the company has laid off several hundred contract employees, including those at its Detroit, Michigan product development center.

DECEMBER 4, 2019 —814 WORKERS AT THE HAMTRAMCK ASSEMBLY PLANT IN DETROIT, MICHIGAN

The company has announced that it will lay off 814 workers, both salaried and hourly, at the Hamtramck Assembly Plant in Detroit, Michigan commencing February 28, 2020. The plant is scheduled to be re-tooled for the production of electric vehicles which will be produced starting in 2021.

The current production of the Chevrolet Impala and Cadillac CT6 will come to an end in early 2020, followed by a plant retooling for the production of electric vehicles, including a pickup, a van, and suv starting in 2021.

The plant was originally scheduled to be closed, but the United Auto Workers union mounted a massive strike which led to revised plans.

AUGUST 26, 2019 — 335 WORKERS AT THE WARREN, MICHIGAN PLANT SLATED TO BE LAID OFF

Layoffs are beginning at the Warren, Michigan transmission plant. Also affected are vendors and those who support the community.

According to a company spokesperson, “The 6-speed transmission was a good product and was built with tremendous pride by the Warren team. We know this is an emotional time for our Warren Transmission team members. We appreciate their commitment and hard work to build the highest quality possible into each and every transmission produced at Warren Transmission Operations. Our focus remains on the employees and the impacted communities. We have job opportunities for every hourly employee at the impacted plants. These are highly-skilled employees, and we want them to stay with the company. We have now placed more than 1,700 employees (out of 2,800) from our unallocated plants to other GM locations. Our goal is to build a strong future for our employees and our business.”

Original post…

The handwriting is on the wall and the Sirens are singling their deadly song.

In a press release, General Motors has confirmed that it intends to “accelerate its transformation for the future, building on the comprehensive strategy it laid out in 2015 to strengthen its core business, capitalize on the future of personal mobility and drive significant cost efficiencies.”

More specifically, the automaker is planning to reduce its salaried workforce by 15%, representing approximately 14,000 employees as well as closing, “unallocating” in corporate-speak, or reducing production at several plants. Plants targeted in North America include the Detroit-Hamtramck Assembly operation in Detroit, Michigan; the Lordstown Assembly operation in Warren, Ohio; the Oshawa Assembly operation in Oshawa, Ontario (Canada); the Baltimore propulsion operations in White Marsh, Maryland; the Warren Transmission operation in Warren, Michigan; and other foreign operations.

General Motors declines to indicate that the facilities will be permanently closed due to ongoing negotiations with its primary labor union, the United Auto Workers.

Mary Barra, Chairman and CEO of General Motors noted, “The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future. We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success. The company is transforming its global workforce to ensure it has the right skill sets for today and the future, while driving efficiencies through the utilization of best-in-class tools. Actions are being taken to reduce salaried and salaried contract staff by 15 percent, which includes 25 percent fewer executives to streamline decision making. These actions will increase the long-term profit and cash generation potential of the company and improve resilience through the cycle.”

The company suggests that these actions will continue “to take proactive steps to improve overall business performance including the reorganization of its global product development staffs, the realignment of its manufacturing capacity and a reduction of salaried workforce. These actions are expected to increase annual adjusted automotive free cash flow by $6 billion by year-end 2020 on a run-rate basis.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT BAK USA

Buffalo, New York-based electronics manufacturer of computers and components, J.P. Bak USA, has announced that it is laying off all of its 77 employees and discontinuing operations. The decision was driven in part by new tariffs on imported electronic components from China which affected the profit margin and competitiveness of their rugged tablets and 2-in-1 laptop products.

Another example of government policy affecting small business that lacks the capital and customer base to sustain itself during trade wars that disadvantage the citizens of the country that imposes them.

In a statement, Chairman and CEO J.P. Bak said:

“It is with great sadness that I announce today that Bak USA will close its doors. My family started this business nearly four years ago with a bold vision: to empower American students and workers by producing computers in the U.S. Through the innovation and hard work of our talented team, we achieved more than we dreamed.

While we are beyond proud of Bak USA’s many successes, the business did not reach the point of profitability necessary to sustain itself. The additional, unanticipated expenses associated with the tariffs imposed by the White House were a deciding factor in our ultimate decision to close."

Apparently, there was a glimmer of hope until the end…

On October 11, 2018, Chairman and CEO J.P. Bak wrote:

“A few weeks ago, my family and I reached an agreement in principle to buy out Bak USA’s shareholders to regain full control of the company’s operations. There were many reasons for this, but the most important is this: we are deeply committed to this company and to having a positive social impact on customers and the community. To that end, we have hired and upskilled well over 100 people, nearly all of whom were new to tech and manufacturing. We’ve developed an innovative human-centric production process. And our computers are empowering more than 30,000 students across the U.S. this school year alone.”

“We’ve done all of this by innovating our way through a landscape littered with challenges and institutional bias. Despite our achievements, we remain vulnerable to unpredictable external forces—most especially tariffs on Chinese components, which will have a significant financial impact on our young company. And while we are still financially sound, we do not have the runway to absorb these blows as a larger company might.”

“Due to these pressures, Bak USA conducted a reduction in force today. Reducing our headcount was a necessary step to ensuring that the business remains sustainable and has a clear path to profitability. By taking this action, we are working to secure the futures of the employees who remain and reset for future success. The decision to reduce the headcount in each department was made carefully based on the skills that the company needs most; right now, and in preparation for the future.”

“In the coming weeks, we hope to finalize the management buyout of Bak USA. We look forward to sharing more at that time about our new outlook and vision for the next chapter in Bak USA’s company story.”

It can happen to anyone, anytime, anywhere ... are you wondering, Am I Next?