Community concerned about ripple effect after Whirlpool layoffs

By Dustin Grove (grove@wsbt.com)

Tools

Layoffs at Whirlpool in Berrien County

Three hundred salaried employees are being laid off from the Whirlpool headquarters in Berrien County. (WSBT photo)

By WSBT News1

Story Created: Oct 28, 2008 at 3:53 PM EST

Story Updated: Nov 3, 2008 at 11:46 PM EST

BERRIEN COUNTY — The wave of layoffs across our area is now hitting one of Berrien County's biggest employers. Three hundred Whirlpool workers are out of a job.

The company posted lower third-quarter profits and officially announced the job cuts Tuesday morning.

Those local jobs aren't the only ones Whirlpool is eliminating. Earlier this month the company laid off approximately 500 workers at some of its other facilities across the country. They're among nearly 5,000 layoffs worldwide.

Whirlpool's chairman and CEO blamed the global credit crisis. He says his company is in the midst of a very challenging economic environment. They've seen a sharp drop in demand, and they don't see that changing anytime soon.

Of the 500 workers laid off in North American facilities, 60 percent are from the company's St. Joseph/Benton Harbor headquarters. That's 300 salaried employees.

It wasn't long ago that Whirlpool announced it was adding jobs. Four hundred positions were promised when the company acquired Maytag in 2006.

But in a statement Tuesday, Whirlpool's chairman and CEO said declining home values, rising unemployment, and low consumer confidence levels mean less demand for Whirlpool products.

St. Joseph city leaders say they aren't surprised, but they are concerned.

“One job has a ripple effect in a community, and certainly 300 will have an effect,” said City Manager Frank Walsh.

And that's why Geri Randall is concerned. Her salon and spa is part of a retail and residential renaissance that locals attribute to nearby Whirlpool and its thousands of employees.

"They live here, they shop here, they eat here, they get their hair done here,” Randall said. “So if they leave it's going to trickle down. It's going to hurt everyone."

"Every job loss is tough,” said Walsh, “and I don't want to downplay the 300 people who find themselves out of a job today, and we'll do everything we can to help them. But to keep Whirlpool competitive in the global market is the most important factor as we move forward.”

Whirlpool said they are committed to keeping about 3,000 jobs in the area.

The unemployment rate in the St. Joseph/Benton Harbor area is 8.2 percent, up from 6.1 percent a year ago. The glimmer of good news is it's a bit better than the statewide unemployment rate: 8.9 percent.

More Good Stuff

WSBT Weather

icon
Current Temp 38.7
°
More Weather

On Demand

More On Demand

Stock Quotes

YouNews

This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.
This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.

Tonight On WSBTFull Schedule

7.00
Wheel of Fortune
7.30
Jeopardy!
8.00
How I Met Your Mother
8.30
Accidentally On Purpose
9.00
Two and a Half Men
9.30
Big Bang Theory
10.00
CSI: Miami
11.00
WSBT News
11.35
Late Show with David Letterman

Question of The Day

Will the new health recommendations for women change your health screening habits?

E-mail your comments. We'll pick some to read during WSBT News at 5.

  • YES
  • NO
Today's Mortgage Rates