An Unexpected Company Now Makes Painful Layoffs in Minnesota

July 19, 2024

An unexpected company now makes painful layoffs in Minnesota, resulting in the loss of nearly 200 employees, per a state filing.

Rich Products Corporation, a global food manufacturer, announced the closure of its Fridley, Minnesota facility, which will result in a total of 170 layoffs.

The company, which also operates a facility in Eagan, confirmed the layoffs will commence on September 13.

According to a layoff notice filed with the Minnesota Department of Employment and Economic Development, the Fridley location at 7350 Commerce Lane will close by December 31,

Rich Products, known for its diverse range of bakery, meat, seafood, and coffee products, manages several renowned brands, including SeaPak, Byron’s Smokehouse, F’Real, and Carvel ice cream cake.

The decision to close the Fridley facility is part of a broader strategic realignment within the company.

However, Rich Products isn’t the only company laying off in Minnesota.

In June, Charter Communications, widely known as Spectrum, announced the permanent closure of its customer contact center in Rochester, Minnesota.

This move will result in the layoff of at least 330 employees, starting on August 15.

A Charter spokesperson said operations will be transitioned to different locations in the U.S.

Employees from the Rochester location have the option to transfer with relocation benefits, and those who don’t will get severance benefits.

“Our goal is to retain as much talent and experience as possible,” Charter Communications said.

No employees from the Rochester location were union members, and Charter does not recognize “bumping rights,” which allow employees to replace other employees based on seniority.

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Other Economy News Today

Applications for unemployment benefits now surge to new highs, a sign that the white-hot labor market is starting to cool off.

First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, per CNN.

Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million.

That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics.

The latest numbers come less than a week after the monthly jobs report showed the US economy added just 175,000 positions in April, less than economists expected and a steep drop-off from prior months.

US employers have now added an average of 245,500 jobs per month, versus 2023’s 251,000-per-month average.

Still, hiring remains strong. Although the unemployment rate ticked up to 3.9% last month, it’s the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s.

Weekly jobless claims data tends to be volatile but, while one week’s worth of data “does not a trend make,” said Chris Rupkey, chief economist at Fwdbonds.

“We can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”

“Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year,” he wrote in a note Thursday.

The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.

While the labor market has so far resisted those efforts, remaining white hot for the past 18 months despite 11 rate hikes from the central bank, Fed Chair Jerome Powell said last week that demand has “cooled from its extremely high level of a couple of years ago.”

Ian Shepherdson at Pantheon Economics said in a note Thursday: “We’d need to see at least a month of elevated readings to convince us that the trend really has turned.”

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Also Read: A Giant Company Now Announces Unexpected Layoffs in Virginia

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