Factory Closures in Illinois Trigger Mass Layoffs

Already this year, four factories have closed, resulting in the loss of over 1,000 jobs due to varying reasons, including relocation plans and revenue losses.

However, as of 2024, this number had dropped significantly to around 580,000 and has continued to shrink this year.

Companies including Quaker Oats, Monterey Mushrooms, Rivian, and Blommer Chocolate have all announced layoffs after experiencing increased manufacturing costs and decreased revenue, amongst other problems.

When asked for the reasoning behind the closure, the company admitted their facility required modernization. However, instead of renovating the building, they decided to move production elsewhere.

“We have notified our workforce and are working closely with our employees and local community officials to provide a supportive transition.”

Unfortunately, the closure will result in the loss of 226 jobs by May 31.

A statement read, “The location and age of the Chicago facility, coupled with increasing repair and maintenance of the building and equipment, have elevated operating costs and created production reliability issues.”

He continued, “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.”

The farm’s closure led to the company laying off over 100 employees.

A company spokesperson said, “A global pandemic, weather impacts, inflation, and changes in market behavior” are to be blamed for the closure.

This comes after the company reported a staggering loss of over $1.5 billion in last year’s fourth quarter.

Regarding Rivian’s troubles, Chief Executive R. J. Scaringe wrote to his staff, ” 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.”