Amesbury Truth Layoffs Going to Impact Employees in 2018
Amesbury Truth, Inc. is planning to close its New York State facility, which will result in 142 employees no longer being employed by the company.
Employees will begin to get notified at the beginning of March 2018. All employees should receive their layoff notices by the end of 2018. The job losses should not come as a surprise to Amesbury Truth employees because the management informed everyone in September of 2017 that future layoffs were coming.
The focus of the business is providing products for the window and door industry. Amesbury Truth has its corporate office in Minnesota and has many warehouse locations around the U.S. Amesbury Truth is a smaller company within the corporate structure of its parent company, Tyman PLC (LON:TYMN).
Why Are 142 Amesbury Truth Employees Receiving Layoff Notices?
The New York facility was making products that are considered irrelevant in this day and age. Even though windows and doors are still needed today, the products made at the New York facility would be considered old technology.
The company will still continue operating in the windows and doors space, but will be doing so out of its facility in North Carolina. The new location will accommodate new products and technologies used in the industry.
In plain English, let’s call it how it is: the senior management team closed one plant in New York and transferred the jobs to the North Carolina plant. However, it is not a direct transfer of employees. Many are losing their jobs at the New York plant and those at the North Carolina plant are taking over the duties.
The Vice President of Human Resources, Steve Brennan, said employees will have the option of applying to another plant. However, there are no guarantees that “former” employees will be given another job with the company.
Amesbury Truth Is Not the Only Company Leaving New York
The announcement from Amesbury Truth could be looked at as déjà vu. The last week of November saw an announcement from Mettler-Toledo International Inc. (NYSE:MTD); it stated that its New York plant would close and jobs would be relocated down south. The layoff notices would be handed out at the beginning of March 2018 as well.
The number-one reason for management deciding to move down south is the operation of fewer facilities and lower overhead costs. In New York, there are stricter rules regarding employee wages, income taxes, and property taxes. Therefore, this one simple move results in a lot of savings for the company, which could be used to grow the top and bottom line of the financial statements.
Amesbury Truth layoffs are the latest reported out of the New York warehouse sector. There could be more possible announcements being made by companies that will go through the same process of transferring of jobs down south.
“Henrietta company to lay off more than 140 people with plant closing,” WXXI News, December 5, 2017.
“Amesbury Truth to close Henrietta plant,”13WHAM, December 4, 2017.
“Mettler-Toledo in Dryden to begin layoffs in March,” Ithaca Journal, November 29, 2017.