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Smead Manufacturing in Hastings to lay off 50 workers

business Cottage Grove,Minnesota 55016
SWC Bulletin
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Smead Manufacturing in Hastings to lay off 50 workers
Cottage Grove Minnesota 7584 80th Street South 55016

Roughly 50 employees at Smead Manufacturing's Hastings location will be out of work by March 18.

The layoffs are a direct result of high unemployment, which has adversely affected Smead's sales.

"It's no secret that unemployment remains exceedingly high," said Smead's vice president of marketing, Jim Riesterer. Smead makes products to help people stay organized - items that often find primary use in businesses.

"Our level of sales is very much tied to the unemployment rate, as well as the overall economy," Riesterer said.

Another factor is the level of competition Smead faces. Many competitors have moved their productions out of the country in order to lower costs, "which is making it more difficult for us to compete," Riesterer said.

In order to keep up, Smead is continuing the efforts every business

makes to size its workforce to the realities of its market, he said.

"It's unfortunate that it results in a number of employees having to lose their jobs," he said.

With more than 1,000 employees, this set of layoffs represents less

than 5 percent of the company's workforce. In Minnesota, Smead employs 300 to 400 people.

"It's a difficult situation when anyone loses their position," Riesterer said. "We remain committed to the community, we remain committed to building our business and will continue to be a good corporate citizen."

Chad Richardson
Chad Richardson is the publisher and editor at the Hastings Star Gazette. He was the general manager of the Farmington Independent and Rosemount Town Pages from 2000 to 2007. He previously worked at the Star Gazette from 1996 to 2000 as a photographer and reporter. He also worked as a photographer and writer at the Pope County Tribune in Glenwood.
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