Throughout June, a number of U.S. packaging groups announced layoff plans totaling more than 1,000 employees, including giants in the U.S. packaging industry such as paper and packaging, as well as glass and plastics.
Among them, it produces 100% recycled container board paper (tissue paper and corrugated paper) and other packaging grades of paper, with a total production capacity of approximately 1 million tons/year, representing a new generation of high-tech, environmentally friendly papermaking and packaging group - Mai Kinley Paper plans to close its paper mill in Port Angeles, Washington, on August 25, 2024, and will lay off 193 employees. The Peninsula Daily reported, citing an email the company sent to employees earlier this week, that the company would conduct large-scale layoffs indefinitely, affecting about 193 employees.
This email is a formal notification under the Worker Adjustment and Retraining Notification Act. The bill requires most employers with more than 100 employees to provide 60 days' notice before imminent layoffs or plant closings. The company anticipates that the last day of work for most affected employees will be August 24, 2024, the end of the 60-day WARN notice period.
Veseloc is closing a facility in Corona, California, according to a June 19 WARN notice. Effective August 18, 77 employees will be laid off. The location is a printing and converting site, according to the Vesrock website.
The company said that based on the information currently available, they hope to resume operations at the factory at some point in the future, but cannot confirm a specific time. The letter was reportedly sent to employees on Tuesday afternoon and posted on social media shortly after. The letter mentioned that employees who leave before August 24 will receive full wages and benefits for a full 60 days. Employees who choose to leave the company will not be entitled to pay or benefits beyond their last day of employment, even if they are assigned a job.
Kimberly-Clark has announced plans to close its Flintshire tissue factory by 2025, putting more than 200 jobs at risk, according to local sources. The decision comes after the UK government banned the sale of plastic-containing wipes. Despite Kimberly-Clark's efforts to reduce plastic in its products, it won't be able to complete it by mid-2026 and therefore won't be able to continue operating the plant. The company is consulting on the closure and is prioritizing support for affected employees during this challenging time. If approved, the Flint facility will continue to operate until 2025 while transition plans are developed with customers and retailers.
Ardagh announced the closing of a glass production plant in Houston serving the beer market and the indefinite reduction of a plant in Seattle that serves wine bottle customers. A total of 464 employees will be affected by the layoffs.
The company issued a WARN notice to the state of Texas regarding the closure of the Houston plant, which will affect 220 workers, a spokesman said. After reviewing current beer market conditions, we have announced that we will close our glass production facility in Houston, Texas in July 2024. The affected customer base will be supplied from Ardagh's remaining glass manufacturing facilities across the United States. Ardagh acquired the Houston glass manufacturing site from Anheuser-Busch in 2021.
Separately, the company temporarily laid off at least 244 employees when it halted production at its Seattle plant, according to a notice from Washington WARN. The company said it would cut production there indefinitely, meaning layoffs could extend beyond six months, although some of those employees "will continue to work actively for some time." If market conditions change, Ardagh said it would consider restarting production at the plant.
Layoffs at the wine bottle manufacturing plant are expected to begin on July 1, according to a notice filed on June 17. "Ardagh's remaining U.S. production network will now allow us to continue to provide high-quality, U.S.-made glass packaging to existing and potential wine customers," the company said in a statement.
"We continue to face demand challenges for its U.S.-produced glass due to continued pressure from low-priced imports from China, Chile and Mexico and market conditions," the company said in a statement. Late last year, Ardagh told U.S. trade regulators Filed a petition calling for an investigation into the importation of wine bottles from China and other countries. Earlier this month, the U.S. Commerce Department issued a preliminary ruling that these products were unfairly subsidized, and a final ruling on countervailing duties is expected in August.
On the beer front, Ardagh executives reported on several earnings calls that its own sales were down due to the beer controversy, without naming the brand specifically. Ardagh felt the trickle-down effect last year when Anheuser-Busch InBev faced a consumer boycott of Bud Light. The announcements in Houston and Seattle come after Ardagh permanently closed glass plants in North Carolina and Louisiana last year, affecting more than 580 workers.
Bryce announced plans to close part of its Memphis operations by the end of 2024. Products produced at the Lamar manufacturing facility are also produced at Bryce's other facilities, which will provide a seamless transition for Bryce customers. Bryce remains headquartered in Memphis, Tennessee, and will continue to operate its bag manufacturing and warehousing operations at its Hickory Hill facility. Bryce's Memphis operations will remain strong, with more than 200 employees in the area.
"We are committed to the long-term success of our employees and customers," said Bryce President Sean Bowie. "Closing the Lamar manufacturing facility will allow us to streamline our processes, operate our business more efficiently and deliver another century of innovative packaging solutions to the global marketplace." Employees affected by the closure will receive retention bonuses, severance pay, guaranteed benefits and Job Placement Assistance. Employees will also have the opportunity to express interest in open positions at other Bryce facilities.
Mauser Packaging Group will lay off employees at a facility in Lawrenceville, New Jersey, according to a WARN notice filed with the state in June. The layoffs will affect 77 employees and are effective from September 6. Previously, Mauser announced in May that it would close factories in Ohio and Wisconsin and exit the U.S. aerosol can manufacturing business.
Tupperware announced in June that it would lay off 148 employees at its plant in Hemingway, South Carolina, as it closed its only U.S. factory and moved manufacturing to Mexico. The layoffs are planned to take place between September 28 and January 14, 2025. The food storage company sold its Hemingway plant last October and will move manufacturing by the end of the year to its plant in Lerma, Mexico, where it already produces most of its products for the U.S. and Canadian markets.
The nearly 80-year-old company said the closure is part of a multi-year strategy to streamline its supply chain and operations and increase efficiency, according to a spokesperson. Tupperware is also dealing with significant concerns about its overall financial health, with the company saying in a quarterly securities filing on March 29 that it has "significant doubt about its ability to continue as a going concern for at least one year."
The closure of the South Carolina plant is the result of a difficult two years for the company. Facing a series of operational and financial difficulties, Tupperware has been trying to restructure debt and change its executive board, electing former Spanx CEO Laurie Ann Goldman as Tupperware's new CEO in October 2023.
The company also delayed submitting its first-quarter 2024 report, saying the delay was due to "material deficiencies in the company's internal control over financial reporting." Despite financial difficulties, Tupperware plans to invest in new third-party logistics facilities in the Midwest, according to a company spokesperson. The new facility will be designed to provide more capacity to serve customers, reduce shipping times and implement new warehouse technology to better serve direct sales, retail and e-commerce customers.
The spokesman said the transformation of production at the Hemingway plant and the establishment of a new distribution center will occur in phases over the remainder of the year. Tupperware has other production sites in Belgium, Brazil, South Korea, Mexico, Portugal, China, India and South Africa, according to a spokesperson.