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Shenandoah manufacturer cuts 250 jobs

News

February 4th, 2016 by Ric Hanson

Less than four months after the Eaton Corporation in Shenandoah announced it would permanently lay-off 71 workers on its third-shift manufacturing line by Dec. 2015, the company delivered another blow to the community this (Thursday) morning. Officials  said 250 hourly and salaried positions will be lost, due to the elimination of the company’s transmission assembly, gear and shaft machining operations.

Operations currently being done in Shenandoah will be moved to either Kings Mountain, North Carolina, or San Luis Potosi, Mexico. The company says it will retain manufacturing of some components for final assembly of the transmissions. Approximately 85 positions will be retained to support ongoing operations. The move is part of a change in the company’s manufacturing strategy. Employees at the plant received the news this (Thursday) morning.

Employees will receive 60 days notice about when their specific positions will be eliminated. Company officials say they will receive full severance packages, outplacement services, and those displaced employees are encouraged to seek out other positions within Eaton.

The company, which has existed in Shenandoah for more than 44 years, says it will work to help those displaced by the change. Eaton’s other Iowa plants are located in Belmond and Spencer.