West Liberty Foods has announced it will lay off 260 workers — about a quarter of its workforce — at the turkey processing plant this year, beginning April 29.
The company also is temporarily suspending matching contributions to workers’ 401(k) accounts in an effort to conserve cash.
Dan Waters, the company’s chief legal officer, said the West Liberty plant is discontinuing its ready-to-eat slicing operation and its second-shift fabrication unit.
The farmer-owned cooperative is moving some of the turkey-slicing operation to its plant in Bolingbrook, Ill., a Chicago suburb, the Des Moines Register reported Monday.
Rapid growth in demand for West Liberty's ready-to-eat sandwiches, produced at the Illinois plant, is driving the move, the company told the Register.
The news comes at the same time Tyson Foods has announced it will close its Perry pork processing plant, laying off nearly 1,300 workers in June — news that is figuring in Iowa lawmaker discussions about decreasing the rate companies must pay into the state’s unemployment fund.
“As a resident of this community, the decision to reduce production capacity in West Liberty was difficult and painful,” said Brandon Achen, president and CEO of West Liberty Foods. “We value the contributions of all team members and deeply regret the need for layoffs. We are committed to connecting each affected person with new employment opportunities and support.”
West Liberty, with a population of around 4,000, became Iowa’s first Latino majority city in the 2010 census, with 52 percent of its residents identifying as Hispanic or Latino. It has a Latino-majority City Council, and a number of Latinos work at West Liberty Foods.
Waters said the plant — which has 865 workers — will provide on-site re-employment and support services for employees losing their jobs.
The announcement said the layoffs will occur in stages, in April, May, June and November. The layoffs will mainly impact the West Liberty plant.
The announcement follows a smaller round of layoffs in November 2023 when the company laid off 25 employees at the West Liberty plant, 17 in the Bolingbrook, Ill., plant and 12 in the Tremonton, Utah, plant due to scaled-back production.
In October 2022, the company closed its Mount Pleasant plant.
At the time, Waters said West Liberty Foods had to scale back production during the COVID-19 pandemic and the labor shortage that followed, allocating available products among existing customers and turning away new business. That left the business with more supervisory, clerical and sales positions than were needed to support the reduced production.
West Liberty Foods, founded by turkey growers in 1996, raises and slaughters about 5 million turkeys annually.
Iowa ranks seventh in the nation in turkey production, and West Liberty Foods provides 40 percent of those turkeys. The West Liberty plant has a $55 million payroll, according to earlier reports.
In regard to the company’s 401(k) program, Waters said employees still are being allowed to make contributions to their retirement accounts.
“We don't know how long the employer match will be suspended,” he said in an email to the Muscatine Journal. “The timing will depend on our company's financial performance.”
www.thegazette.com
The company also is temporarily suspending matching contributions to workers’ 401(k) accounts in an effort to conserve cash.
Dan Waters, the company’s chief legal officer, said the West Liberty plant is discontinuing its ready-to-eat slicing operation and its second-shift fabrication unit.
The farmer-owned cooperative is moving some of the turkey-slicing operation to its plant in Bolingbrook, Ill., a Chicago suburb, the Des Moines Register reported Monday.
Rapid growth in demand for West Liberty's ready-to-eat sandwiches, produced at the Illinois plant, is driving the move, the company told the Register.
The news comes at the same time Tyson Foods has announced it will close its Perry pork processing plant, laying off nearly 1,300 workers in June — news that is figuring in Iowa lawmaker discussions about decreasing the rate companies must pay into the state’s unemployment fund.
“As a resident of this community, the decision to reduce production capacity in West Liberty was difficult and painful,” said Brandon Achen, president and CEO of West Liberty Foods. “We value the contributions of all team members and deeply regret the need for layoffs. We are committed to connecting each affected person with new employment opportunities and support.”
West Liberty, with a population of around 4,000, became Iowa’s first Latino majority city in the 2010 census, with 52 percent of its residents identifying as Hispanic or Latino. It has a Latino-majority City Council, and a number of Latinos work at West Liberty Foods.
Waters said the plant — which has 865 workers — will provide on-site re-employment and support services for employees losing their jobs.
The announcement said the layoffs will occur in stages, in April, May, June and November. The layoffs will mainly impact the West Liberty plant.
The announcement follows a smaller round of layoffs in November 2023 when the company laid off 25 employees at the West Liberty plant, 17 in the Bolingbrook, Ill., plant and 12 in the Tremonton, Utah, plant due to scaled-back production.
In October 2022, the company closed its Mount Pleasant plant.
At the time, Waters said West Liberty Foods had to scale back production during the COVID-19 pandemic and the labor shortage that followed, allocating available products among existing customers and turning away new business. That left the business with more supervisory, clerical and sales positions than were needed to support the reduced production.
West Liberty Foods, founded by turkey growers in 1996, raises and slaughters about 5 million turkeys annually.
Iowa ranks seventh in the nation in turkey production, and West Liberty Foods provides 40 percent of those turkeys. The West Liberty plant has a $55 million payroll, according to earlier reports.
In regard to the company’s 401(k) program, Waters said employees still are being allowed to make contributions to their retirement accounts.
“We don't know how long the employer match will be suspended,” he said in an email to the Muscatine Journal. “The timing will depend on our company's financial performance.”
West Liberty Foods laying off 260 workers
Turkey plant also temporarily suspends 401(k) employer contributions
www.thegazette.com
