Spring Hill Hit With Hundreds of Job Cuts
Just days after General Motors Company (GM) cut hundreds of jobs by eliminating a shift at its assembly plant in Spring Hill, Tennessee, one of its subcontractors has also announced mass layoffs.
Ryder Supply Chain Solutions (aka Ryder System, Inc.) has announced that the company is cutting 361 jobs in Spring Hill, likely a result of GM’s move. The job cuts are taking place at Ryder’s warehousing and logistics facility, which is close to GM’s factory.
It remains undisclosed how many employees will remain at Ryder’s facility after the job cuts. However, it has been confirmed that the affected employees include forklift operators who were responsible for moving materials in GM’s factory.
Ryder’ Worker Adjustment and Retraining Notification (WARN) document filed with the state shows that the last day of work for the affected employees will be November 22. That’s about the same time that the GM layoffs will go into effect.
Less than two weeks prior to Ryder’s layoffs, GM announced that it was eliminating the third shift at its Spring Hill plant—a move which affects about 680 workers.
Sales Decline in Auto Industry in 2017
That factory produced two of GM’s crossover SUVs, “GMC Acadia” and “Cadillac XT5.” I’ve written before that GM’s production scaleback at the SUV factory is rather odd, since SUVs have been driving sales for the company this year, while demand for passenger cars softened.
All three of America’s major carmakers—GM, Ford Motor Company, and Fiat Chrysler Automobiles NV—have been cutting their output in order to avoid an inventory glut. What has become obvious from Ryder’s layoffs is that a slowdown in sales at major automakers is having a ripple effect across the industry. Businesses relying in any way on auto sales are suffering.
Earlier this year, we’ve seen major auto parts manufacturers also laying off employees as they struggle with declining sales. Tennessee has particularly been hit with auto industry layoffs since it’s one of the country’s major hubs for automotive manufacturing.
Ryder’s layoffs follow just two years after the company announced plans to expand within Tennessee with an aim to double its investment in Spring Hill.
“GM subcontractor Ryder cutting 361 Spring Hill jobs,” Tennessean, September 27, 2017.
“Ryder Supply Chain Solutions to Slash 361 Jobs at Tennessee General Motors Facility,” Transport Topics, October 2, 2017.
“GM to Eliminate Shift at Tennessee SUV Plant, Lay Off Hundreds of Workers,” The Wall Street Journal, September 22, 2017.