Factory fallout: Manufacturing plant closures and layoffs from Merck, Post, STMicroelectronics, and more
With political winds changing and global markets tightening, manufacturers are making tough decisions—and workers are feeling the impact. In this roundup, we chronicle the closures and cutbacks reverberating throughout the manufacturing sector. As uncertainty becomes the new normal, we examine how businesses and workers alike are navigating a rapidly changing industrial landscape.
STMicroelectronics has announced a global restructuring plan that will result in up to 2,800 voluntary workforce reductions over the next three years, primarily occurring in 2026 and 2027. The company emphasized that all changes will be implemented through voluntary measures, with ongoing discussions with employee representatives. In a recent quote, Jean-Marc Chery, President and CEO of STMicroelectronics, said, “The reshaping of our manufacturing footprint announced today will future proof our Integrated Device Manufacturer model with strategic assets in Europe and improve our ability to innovate even faster, benefitting all our stakeholders. As we focus on advanced manufacturing infrastructure and mainstream technologies, we will continue to leverage all of our existing sites and bring redefined missions for some of them to support their long-term success. We are committed to managing this program responsibly, according to our long-established values, and exclusively through voluntary measures. The technology R&D, design, and high-volume manufacturing activities in Italy and France will continue to be central to our global operations and will be reinforced via planned investments in mainstream technologies.”
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According to AL.com, Grede LLC will close its manufacturing plant in Brewton, Alabama, resulting in the layoff of up to 220 employees. The company plans to begin transferring operations to other U.S. facilities by mid-2025, with all manufacturing in Alabama ending by year’s end. In a recent quote, the company said, “Grede’s primary served markets have not rebounded to pre-COVID volumes resulting in an availability of capacity across some of Grede’s US foundries. We are transferring work across our network of facilities to maximize utilization of assets and reduce inefficiencies.” The closure was announced to employees in February and formally reported in a WARN notice filed with the state on April 1.
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Post Holdings, Inc. announced plans to close two Post Consumer Brands cereal manufacturing plants located in Cobourg, Ontario and Sparks, Nevada, affecting approximately 300 employees. The closures are set to be completed by the end of December 2025, with production shifting to other company facilities. In a recent quote, Nicolas Catoggio, President and CEO of Post Consumer Brands, said, “The ready-to-eat cereal category continues to decline. To respond to this, we are reducing excess manufacturing capacity and optimizing our North American plant network to better utilize our production capacity.” The company expects the closures to result in annual cost savings of $21 to $23 million beginning in fiscal year 2026.
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According to Fierce Pharma, Merck will lay off 163 employees at its Cherokee manufacturing plant in Riverside, Pennsylvania, as part of a planned site closure by 2026. The layoffs will occur in three phases, beginning in May 2025, with additional rounds in mid-2025 and final separations expected in 2026. The plant, which previously produced antibiotics such as Primaxin/Tienam and Invanz, is being phased out as part of Merck’s multi-year plan to end operations there. In a recent quote, a company spokesperson said, “Separations related to this closure will begin in May 2025, and we are committed to assisting and supporting employees at the site through this transition and providing separation benefits.”
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According to KVRR, CNH Industrial is laying off approximately 198 hourly workers at its Case New Holland manufacturing plant in Fargo, North Dakota, due to current and anticipated market conditions. The affected employees were notified earlier this week, and the layoffs impact those involved in producing tractors and loaders for the agricultural and construction sectors.
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