Whirpool, the global home-appliance company is going to render about 651 of its workers jobless at its manufacturing plant in Amana, Iowa, in the US. That means, almost a third of the 2,000-strong workforce at the plant will be let go.
As per the company, the decision to cut jobs was taken in response to decreasing demand for appliances, particularly refrigeration units that were manufactured at Amana.
These layoffs come into effect from 1 June 2025.
The timing could not have been worse. With Iowa having now limited the duration of unemployment benefits available to workers, the laid-off workers will be facing a lot of stress. Earlier, they would have been entitled to 10 weeks of unemployment benefits. Now, the eligibility criteria has become more strict. With alterations made to legislations, unemployed Americans will find it harder to access unemployment benefits.
Meanwhile unions are wondering how a company that raked in billions in sales last year could take such a drastic step and make workers suffer.
Around this time last year, the company had unveiled plans to slash roles globally. The decision to downsize at the time had come as part of a broader effort to streamline operations and curtail expenses, with a target of trimming costs by a substantial $400 million in 2024. At the time, in addition to the workforce reduction announcement, Whirlpool had reported a 3.4 per cent decline in first-quarter net sales, amounting to $4.49 billion. This drop reflected the broader challenges faced by the company amidst shifting consumer preferences and macroeconomic uncertainties.
