A giant company now makes unexpected layoffs in Kentucky despite a big jump in its profitability, per market analysts.
Quanex Building Products has filed a WARN notice advising that a total of 140 employees will be affected due to its Bluegrass closure.
The notice date was given on Tuesday the 9th with the layoffs in Kentucky expected by June 7.
It’s important to note that under the Worker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide a 60-day notice before laying off 50 or more people at a single site.
Shares of the company are down more than -8% in the past five trading days despite an increase in its ROCE score.
“Quanex Building Products’ ROCE growth is quite impressive. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 180% in that same time.
So it’s likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn’t changed considerably,” reports Yahoo Finance.
ROCE measures the ‘return’ (pre-tax profit) a company generates from capital employed in its business.
Last month, the following businesses also announced they were laying off in Kentucky:
- Packers Sanitation Services Inc. (PSSI). 78 job cuts.
- PACKERS SANITATION SERVICES, INC. 79 job cuts.
- GUESS Distribution Center. 200 job cuts.
- Pride Mine (formerly Survant Mine). 230 job cuts.
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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
Other Economy News Today
Three massive bank branches are now closing in California according to fresh data from the Office of the Comptroller of the Currency.
This week, two giant banks closed two branches in the golden state.
Bank of America closed its location on 3591 Mission Blvd, Fremont while JPMorgan shuttered its branch on 1030 W Alameda Ave, Burbank.
However, three additional major bank branches have now made the list of upcoming closures in California.
The Office of the Comptroller of the Currency details that the following bank branches will be closing in California soon:
- Bank of America. 225 Canyon Crest Dr, Riverside
- Bank of America. 8949 Clairemont Mesa Blvd, San Diego
- Bank of America. 7404 Jackson Dr, San Diego
According to official US Government data, over 220 bank branches closed across the nation in January and February, and California was the state most impacted.
The federal regulator found Bank of America, US Bank and Citizens led the charge with the national banks accounting for nearly half of all closures, reports GBNews.
These banking groups closed 92 locations within the space of eight weeks with 222 sites closing down during the period overall.
If banks across the United States continue to shut down at their current rate, around 1,300 will close by the end of 2024.
Steven Reider, the founder and president of Bancography, cited the growing confidence among banks in being able to provide sufficient financial services online.
In January and February, Bank of America’s 41 branch closures having potentially saved the financial institution nearly $100million.
Redier explained: “’Banks are willing to close a branch that isn’t really overlapping any other branch on the gamble that customers are willing to drive a little bit further.
“I think Bank of America has leaned into that more than the other large banks have.”
The rate of bank branch closures has been exacerbated due to the Covid pandemic which resulted in people relying on online banking services due to staying at home.
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Also Read: California’s New $20 Minimum Wage Now Creates Painful Layoffs
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