AM I NEXT? NO LOVE AT NAVISTAR

Am I Next? Business decline at Navistar results in layoffs.

Lisle, Illinois-based Navistar, a manufacturer of commercial vehicles and components, has announced that it will be laying off 136 unionized assembly production workers at its Springfield, Ohio plant. The decision is an economic one conditioned by marketplace demand and the company’s overall production capacity. According to a company spokesperson, “Production line rates will be reduced in order to realign production with current demand. This cycle is normal for our business, and this is not a shift of production to other locations.”

According to a spokesperson for the United Auto Workers, ‘Layoffs will be administered based on seniority and affected workers will retain recall rights at the plant.”

In the 2019 Q3 earnings call, Troy Clarke, Navistar’s Chairman, President, and Chief Executive Officer noted, “Navistar’s backlogs are declining as well, and as you have seen, we are actively managing this by adjusting assembly line rates to create a balance between customer demand, inventory levels and a healthy backlog. Today weaker U.S. orders, as well as lower Mexico and Latin America orders has resulted in the need to reduce assembly line rates in both of our truck plants. We make these type of decisions everyday, actively managing our business appropriately with the goal of an efficient, order to delivery process. As a result, total company and dealer inventories remain at the low-end of the normal range at 85 days.” 

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT MOVEMENT MORTGAGE

Am I Next? Layoffs at Movement Mortgage.

In the third-round of cuts in 2018, Fort Mill, South Carolina-based Movement Mortgage has announced that they will lay off 180 back office and support personnel at locations in Fort Mill, South Carolina, Norfolk, Virginia, Richmond, Virginia, Tempe, Arizona. This was preceded by 100 layoffs in May 2018 and 75 layoffs in February 2018.

CEO Casey Crawford explained that the decision for further cuts was made “in response to a nationwide downturn in the housing and mortgage market, lower mortgage origination forecasts for 2019, rising interest rates and low housing inventory. This was a very difficult decision because it affected teammates we love. We are incredibly grateful for their contributions. We believe we’re taking the necessary steps to continue to provide outstanding service for our customers, loan officers and communities long-term by adjusting to the reality of the mortgage business today. We’re prepared for the future and expect to continue making a positive impact in our industry, corporate culture and communities in the years ahead.”

Look for downsizing in the back office support areas of all major financial sectors.

Are you wondering, Am I Next?