Whirlpool Corporation will lay off 651 workers at its manufacturing plant in Amana, Iowa, the company announced this week.
It’s a move that has triggered political backlash and renewed scrutiny of recent changes to the state’s unemployment benefits.
The layoffs, effective June 1, represent the largest in Iowa since Tyson Foods closed its Perry facility last year, affecting 1,276 workers.
Why It Matters
The job losses come just weeks after Iowa’s Republican-led Legislature reduced the duration of unemployment benefits available to workers affected by plant layoffs and closings, a move that labor leaders and Democratic lawmakers argue leaves displaced workers with fewer options during economic uncertainty.
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What To Know
Whirlpool attributed the layoff decision to falling demand for appliances, particularly refrigeration units made at the Amana facility.
“Whirlpool Corporation has necessary adjustments to production at its Amana operations to align with current market conditions driven by consumer demand,” the company said in a statement, noting that the reduction would impact nearly one-third of the plant’s 2,000 employees.
The layoffs are the latest in a string of workforce reductions that have hit Iowa’s manufacturing sector, which lost 7,600 jobs over the past year—the steepest decline of any industry in the state.
According to Iowa Workforce Development, 5,600 of those losses were in durable goods, a category that includes home appliances, according to the Des Moines Register.
Critics say the timing of the layoffs highlights a dangerous gap in the state’s economic safety net.
“This is outrageous for a company that made $17 billion in sales last year,” Iowa Federation of Labor President Charlie Wishman said in a statement published by Iowa Starting Line. “Again, the working class is suffering at the hands of billionaires who don’t seem to care, let alone understand the struggles of the American people.”
Unions are also mobilizing. The International Association of Machinists and Aerospace Workers, which represents the Amana workers, vowed to “work to mitigate the impacts” and ensure that employee rights are respected during the transition.
“This is a community that relies heavily on good IAM Union jobs that help sustain thousands of families in the Amana area,” the union said.
Democratic lawmakers have expressed concerns over the layoffs, given recent legislative decisions.
“Before session ends, the Iowa Legislature should restore the 10 weeks of unemployment benefits for the workers at Whirlpool they cut and do all we can to make sure these workers can find good-paying jobs,” said state Representative Jennifer Konfrst, minority leader in the Iowa House, according to Iowa Starting Line.
Iowa has now limited the number of weeks of unemployment available to workers, which could cause further economic strife for the hundreds of workers that now find themselves without a job.
The Amana plant, located in Iowa County—which voted 63 percent for Donald Trump in 2020—has long been seen as a symbol of American manufacturing. In 2020, President Trump praised Whirlpool during a speech at a company plant in Clyde, Ohio.
“Every day, 20,000 gleaming new machines coming rolling off that beautiful assembly line—I just got to see it—and every single one is proudly inscribed with that glorious phrase, ‘Made in the USA.'” Trump said, adding that the company represented his administration’s push to bring jobs back to the U.S. from overseas.
But despite those assurances, Whirlpool’s stock has dropped nearly 65 percent since reaching a high in May 2021. In January, CEO Marc Bitzer announced a $200 million cost-cutting initiative and cited hopes for an eventual housing market recovery to lift demand.
As economic pressures continue to mount, Iowa’s gross domestic product dropped in the most recent quarter, one of just two states to post negative growth, according to the Bureau of Economic Analysis.
“Alarm bells should be sounding in our communities,” state Senator Janice Weiner said. “Our agriculture economy is worsening, on-again-off-again tariffs are exacerbating existing issues, and Iowans hardly go a week without seeing another round of layoffs.”
Union officials and Democratic leaders have renewed calls for legislative action to bolster worker protections.
“We are also reaching out to local stakeholders and elected officials to secure any support possible for our membership,” the IAM union said in its statement.
What People Are Saying
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “Layoffs on a large scale like these are especially troubling, as they could forebode more workforce reductions from major employers in the coming months. In Whirlpool’s case, it’s concerning on both sides, as the less revenue coming in from the major purchases the company is trying to sell signals weakening demand from American consumers.”
Kevin Thompson, a finance expert and the founder of 9i Capital Group, told Newsweek: “Overall, it feels like the leverage workers gained during the pandemic is slowly slipping away—from return-to-office mandates to reduced unemployment support to growing layoffs. The pendulum seems to be swinging back in favor of employers.”
What Happens Next
“In terms of unemployment benefits, major layoffs from one employer may not trigger immediate widespread panic,” Beene said. “However, if we see more incidents like this one, that could be a sign that limitations of these benefits need to be reconsidered.
“Large numbers of unemployed Americans needing financial assistance and not getting it would be devastating for the economy and a problem for the reelection of many officials.”