Hoover to cut 750 jobs, owners say
The Hoover Company's new owner said it would close its main plant in North Canton, Ohio, by this fall, resulting in 750 job losses. The company has been located in this northeast Ohio city for nearly 100 years. Union leaders tried unsuccessfully last year to form a coalition to buy out the plant.
The closings will result in 650 union job losses and 100 salaried positions. Other plant operations in El Paso, Texas and Juarez, Mexico will remain open. Hong-Kong based Techtronics bought the Hoover company from Whirlpool last year.
Surely, the job losses will affect the North Canton area, as will the vacant buildings. The current plant is more than a million square feet. Filling that space will prove to be a daunting task. The loss of jobs and the vacant space will take a lot of time to overcome.
These cutbacks could be due to increasing operating costs in the local area. The Texas and Mexico plants could be more efficient.
2 comments:
Although I'm not sure if this came into play, but if they have a plant in Mexico and the company who bought it is based in Hong-Kong labor costs could have been a large part of the problem. Also in a buy out it isn't surprising to see closing of plants. There are various different reasons in a buy out why they would close the plant, but I'm not sure which was the main reason. It probably wasn't about taking over the company and making it more efficient as buying the name Hoover. Hoover has become a popular brand name and it could benefit the company who bought it out for that reason in itself.
I think its sad that so many people lost thier jobs as this plant has been so reliable over many years. hopefully something else can move in and people can get their jobs back.
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