Illinois Hit by Mass Layoffs as Four Factories Close

Workers at factories in Illinois have been hit by mass layoffs and closures in recent months.

Since the start of 2024, four factories in Illinois have announced they will make more than 1,000 employees redundant due to manufacturing costs, revenue losses and the need to relocate operations. The Quaker Oats Company, Blommer Chocolate Company, Rivian and Monterey Mushrooms have all announced or enacted layoffs since January this year.

This week, the Quaker Oats Company announced it would make 510 redundancies as it moves operations to other factories. Newsweek has contacted Illinois Governor J.B. Pritzker and the Illinois Department of Commerce and Economic Opportunity for comment via email outside of normal working hours.

"The Quaker Oats Company announces that we are permanently closing our facility in Danville, Illinois," the company said in a statement. It cited the need for modernization and enhancements at the facility that would require it to be closed for an extended period of time. The company has opted to move production to other facilities instead of carrying out the necessary changes.

"We do not make this decision lightly and recognize the impact it will have on our employees, their families, and the Danville community. We have notified our workforce and are working closely with our employees and local community officials to provide a supportive transition," the Quaker Oats Company added.

In late March, Blommer Chocolate Company notified state officials that the closure of its factory in Chicago's Fulton River District would result in 226 job losses as of May 31. A statement seen by the daily newspaper Chicago Sun-Times said the decision is down to the "location and age of the Chicago facility coupled with increasing repair and maintenance of the building and equipment has elevated operating costs and created production reliability issues."

"They've been working very hard to keep this plant operational for many years. They know the struggles that it's taken to run something of this vintage," said Robert Karr, senior vice president of Blommer. "They've taken the news as we have—very hard—in the sense that we've all been so committed. And while we don't want this day to come, it's a sad day, but it's also a part of the future."

In February, electric car manufacturer Rivian announced 100 redundancies for workers at its assembly plant in Normal this year, amounting to 0.6 percent of its salaried workforce in Illinois. The company reported a loss of $1.5 billion in the fourth quarter of last year, compared to a loss of about $1.7 billion during the same period of 2022.

"Our business is facing a challenging macroeconomic environment—including historically high interest rates and geopolitical uncertainty—and we need to make purposeful changes now to ensure our promising future," founder and chief executive R.J. Scaringe wrote in an email to staff, according to AB7 Chicago.

The company, headquartered in California, said at the time that it had laid off approximately 10 percent of its workforce, mostly salaried employees, with a limited number of non-manufacturing, hourly employees included.

After an announcement made in November 2023, Monterey Mushrooms laid off 100 workers when it closed its farm in Bureau County in January. It also closed a location in Florida at the same time.

The company cited significant challenges, including "a global pandemic, weather impacts, inflation, and changes in market behavior," for the closure.

The St. Louis Federal Bank says the number of people employed in manufacturing jobs in Illinois has significantly decreased since the 1990s. In February 1990, an estimated 927,300 people were employed in manufacturing roles, when data collection by the U.S. Bureau of Labor Statistics began. In February 2024, that number stands at just over half a million, at 581,000.

Have you been affected by layoffs in Illinois? Email a.higham@newsweek.com