Job cuts are being announced at a hydraulic pump maker in northwest Iowa. Eaton Corporation is eliminating 5,200 jobs out of its global workforce of 80,000. Scott Moore, the human resources director at the Spencer plant, confirms that 26 of those jobs are in Spencer.
In mid-December, 103 workers at the Spencer facility were laid off. Moore says those layoffs will now become permanent. Moore adds, the last day of work will vary with each employee, but the workforce reduction will be in place by the end of February. Eaton lowered its profit forcast in mid-December and said it had to cut costs by $125-million in 2009.
It announced 3,400 job cuts at that time, which also affected its Iowa facilities in Belmond and Shenendoah. Eaton had once planned to move heavy duty assembly and test operations currently in Spencer to a plant in Mexico, but reversed that decision in July of 2007 citing an increase in orders. After the reductions announced yesterday the Spencer plant will have a workforce of 280 people.