PROVIDENCE — Another local manufacturer is showing signs of trouble.
Mahr Federal, of Providence, announced last week that it had laid off 11 percent of its workforce in an effort to sustain its business in what company officials called a “soft market.”
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Twenty-six employees were let go last Monday (July 10) when they arrived at the Eddy Street plant, and an additional 20 field workers had received their notification by Tuesday.
“There wasn’t any advanced notification,” said Gary Robison, marketing manager for the company. “People were let go (Monday, July 10) morning here in Providence.”
Robison said all of the affected employees were offered severance and other benefits.
The company, which manufactures dimensional measuring instruments, had 410 employees prior to the announcement.
Mahr Federal President Craig Crossley noted a 33 percent decline in U.S. machine tool consumption as the primary reason behind the layoffs.
“Metalworking companies industry-wide are affected by low sales and unfortunately, Mahr Federal is no exception,” he said in a statement. “Over the past several months we have implemented a number of initiatives to reduce operating costs, including the elimination of overtime, controlled spending, and voluntary and involuntary furloughs. However, continued softness in the market now requires a permanent reduction in staff.”
