Sanmina Plant Closing: 50 Temporary Employees Laid Off, 161 More to Be Let Go Next Year
A round of Sanmina Corp (NASDAQ:SANM) layoffs in Owego, New York will see hundreds of workers lose their jobs in an area where manufacturing positions have been declining for years. The Sanmina Owego plant closing and the subsequent Sanmina layoffs will spell another blow to the manufacturing sector in the region, with manufacturing jobs often seen as high-wage positions that don’t require an extensive education to fill, therefore providing a blue-collar path to the middle-class.
Sanmina provides electronics manufacturing services.
The job cuts will take place immediately while the remainder of the Sanmina job cuts will occur in March 2018. This means that the bulk of the announced layoffs in 2017 will take place in the new year.
The region has already seen 700 manufacturing jobs terminated the past year. Since 1990, two out of every three production-sector jobs have left the community.
The remaining employees are now faced with an uncertain future, with some concerned about more Sanmina layoffs in 2018 on the way.
The Sanmina plan shut down will mean that 50 temporary employees and 161 full-time workers will be let go by the company.
The Owego plant closing also does not bode well for the remaining 113 workers, with more Sanmina downsizing potentially on the way.
“We continually evaluate our global manufacturing operations and adjust our facilities and operations to keep our manufacturing capacity in line with demand and our manufacturing strategy and to provide cost-efficient services to our customers. Through this process, we have closed certain facilities not required to satisfy current demand levels,” the company said in its most recent filing.
At the facility’s peak in 2002, it employed more than 1,000 people.
Sanmina Reported 11% Q4 Losses Year-Over-Year in 2017
The Sanmina quarterly losses speak to the tough position the company finds itself in.
In the 2017 fiscal year, the Sanmina revenue decline was significant. The company registered a net income of $139.0 million, compared to $188.0 million the year before.
In the fourth quarter, the company posted an 11% decrease year-over-year in earnings.
The Sanmina layoffs also speak to the state of manufacturing jobs in the U.S. Despite being lauded by the federal government and many state governments as well, the renewed focus on the sector has not necessarily translated into job increases, as many parts of the country continue to see manufacturing layoffs. How the sector—which once was a strong driving force of the U.S. economy—recovers is a question that many politicians must answer.
“Sanmina to let go 161 in Owego, plant’s future in doubt,” PressConnects, December 7, 2017.
“Sanmina Corporation Reveals 11% Fall In Q4 Earnings,” NASDAQ, October 30, 2017.