A massive US company is now laying off thousands of employees after announcing the closure of a plant in South Central Oklahoma.
Michelin announced it will be “winding down,” its operations at the plant by 2025.
About 1,400 people will be losing their jobs because of the wind down.
That doesn’t include contractors or other businesses that will also be impacted by the loss of production.
Headquartered in Greenville, S.C., Michelin North America employs about 22,650 and operates 20 major manufacturing plants.
The Ardmore tire factory has been a major employer in the region for decades, opening its doors in 1970.
Michelin says in a news release that the Ardmore plant isn’t equipped to evolve with market demands for tires. The company will be moving production to other passenger-tire plants across the continent.
“Michelin has strived to be a good steward in every chapter for this plant and community. Winding down operations is the hardest of all business decisions,” Terry Redmile, senior vice president of manufacturing for Michelin Group’s Americas Zone, said in a statement from the company.
The company says that precise timing has not yet been determined but that based on the outlook of demand, staffing reductions will occur sometime around mid-2024.
“Additional reductions are expected to occur in phases through 2025 as transition plans are finalized,” the company stated.
“Michelin has strived to be a good steward in every chapter for this plant and community. Winding down operations is the hardest of all business decisions,” said Terry Redmile, senior vice president of manufacturing for Michelin Group’s Americas Zone.
The company said on Thursday that over the coming days and weeks, representatives for the Company will discuss separation benefits individually with each person who works in the factory.
Also Read: A US Company Now Declares An Unexpected Bankruptcy
Other Economy News Today
A major essential company has now filed for an unexpected bankruptcy after falling into massive dept with its creditors.
“Air Methods provides critical services that literally mean the difference between life and death on a daily basis and for thousands of people each year,” reports TheStreet.
“The company has filed for Chapter 11 bankruptcy protection in order to put in place an agreement to restructure the company with its key debtholders.”
The company which currently has $1.7 billion in debt, would see its debt erased as its creditors become the majority shareholders in the company.
“Critical care does not begin in the emergency room. It begins at the scene of the accident or the moment a life-threatening illness strikes.
Air Methods has a talented workforce of over 4,500 team members, which includes the best in the air medical industry,” the company shared on its website.
Under the terms of the deal, all outstanding bills would be paid and workers would receive their full pay and benefits without any delays.
The company says that it is currently continuing normal operations.
The deal would provide Air Methods with a whopping $80 million in working capital.
CEO JaeLynn Williams said the deal was needed so the company could keep providing its lifesaving care services.“
“With increased financial flexibility and access to additional capital, we will be better positioned to continue opening new greenfield bases, accelerate our talent acquisition initiatives, execute on our growth initiatives, and equip more emergency personnel with the expertise needed to safely deliver the highest quality air medical care for generations to come,” Williams said in a media statement.
The company plans to complete the restructuring under court approval before the end of the year.
Also Read: Massive Retailer in Florida Now Grapples With Bankruptcy
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