An unexpected plant in Florida is now laying off hundreds as it prepares to close its doors, per a Florida Department of Commerce notice.
The Cutrale orange juice plant in Leesburg is closing its doors and laying off 117 employees, according to a notice posted on the Florida Department of Commerce website.
The notice is required under the Worker Adjustment and Retraining Notification law (WARN).
Phase one will occur on July 31 with 101 layoffs and phase two on Oct. 31 with 16 layoffs.
The reason listed was “primary business partner has decided to move packing operations from the Leesburg facility to their own facilities.”
Daily Commercial reports that the human resources director for Cutrale could not be reached for comment.
The plant is not just a longtime fixture of the city but a big contributor to its economy.
The plant, for example, also buys electricity and water from the city.
“It’s a big deal,” said City Manager Al Minner, who is reviewing data to see just how much the closing will impact the city’s budget.
Sandi Moore, president and CEO of the Leesburg Area Chamber of Commerce, said she remembers growing up in Leesburg and the smell of burnt oranges coming from the plant on U.S. Highway 441.
“I’m really sad.
This is going to impact a lot of people,” she said, noting the plant is one of the biggest employers in town.
The plant is also a heavy-hitter as a taxpayer.
The company will continue to pay property taxes regardless if the plant is operational or not.
“There will definitely be a big hit on tangible taxes,” said Lake County Property Appraiser Carey Baker.
Tangible taxes are taxes on business equipment.
The move also will impact truckers who deliver oranges from other counties and related businesses.
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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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