Pratt Industries Announces Layoffs at Livonia Facility Following Loss of Major Client
Pratt Industries’ Livonia, Michigan, plant, located in the southeast, will face deep staff cuts. Sources conveyed that this will happen by August 10 and that 53 employees will be affected. The company officially notified employees of the layoffs by filing a notice with the Michigan Department of Labor and Economic Opportunity, under the WARN Act, which specifies the provision of early warning to employees when a plant is closing or a mass layoff is in line.
What led to this action? The company stated that the dismissals were a reaction to a decrease in the business, which can be traced directly to Ford’s announcement of the cancellation of the collaboration with Pratt Industries. The significance of the loss of a client like Ford to a place of operation mostly oriented for converting and transportation can’t be overstated.
Pratt Industries’ Michigan locations include the recently mentioned one in Livonia, and two others in the cities of Grand Rapids and Kalamazoo. Nevertheless, the company still retains a solid position in the U.S market – it is the fifth largest corrugated packaging manufacturer with a presence in 25 states across the country.
The big scale of company production doesn’t cast a shadow over the fact that wellshore business deals can turn out to be the most difficult task. While this is an addition to the company’s operating status, this is indicative of the seemingly unsolvable issues of those plants, which heavily depend on the larger contracts. With the upcoming August layoff date, workers and the community are both feeling the sting of such a sudden change.
