Medical injection molder Phillips-Medisize Corp. will permanently lay off 96 employees and possibly lay off another 225 employees, at its St. Croix Meadows site in Hudson, Wis., "due to a sudden and significant drop in demand from a major customer."
"While this is difficult news to announce, our staffing levels must be aligned with demand," David Thoreson, vice president of global operations at Phillips-Medisize, told Plastics News in an email. "This is not a reflection of the excellent work our employees do every day at St. Croix Meadows, and our HR team will be working with impacted employees to identify opportunities at our other Wisconsin sites in Medford, New Richmond and Menomonie."
The company will lay off the initial 96 employees on or around July 12, a notice submitted to the Wisconsin Department of Workforce Development said.
"In the event our customer informs us that a complete cessation of production is necessary, we anticipate a permanent layoff of approximately 225 additional employees, which would likely take place in phases," the notice said.
The additional layoffs are expected to be complete on Oct. 12, it said.
Phillips-Medisize is unable to give all employees being laid off 60 day's notice, the notice said. "We will continue to keep our employees closely advised as to possible separation dates as circumstance develop."
"We will also be providing direct support to them during this time, including severance packages," Thoreson told PN. "The St. Croix Meadows site, which opened in 2019, remains an important part of Phillips-Medisize' manufacturing footprint."
No union represents the affected employees.
Phillips-Medisize was No. 13 in the most recent Plastics News ranking of North American injection molders with $530 million in annual sales in the region.