This morning's Journal leads with a story announcing layoffs at Wilcox Press:
Wilcox Press is laying off 53 of its 165 employees on a temporary basis as it seeks refinancing to weather competitive pressures in the commercial printing industry, the company confirmed Thursday....
"Wilcox Press is experiencing difficulty due to competitive pressures and a shortage of working capital," according to a statement released Thursday by the company. “The board of directors and management remain committed to preserving their company as a progressive, independent, commercial printer and as an important employer in Tompkins County. This difficulty is forcing Wilcox Press Inc. to temporarily reduce the scale of operations until a refinancing can be completed. Therefore, 53 employees are being placed on temporary layoff.
This action is not a reflection of the abilities of the employees that are affected. It is an action necessitated by the situation of the company and the state of the industry. The company expects that a refinancing can be achieved but cannot provide guarantees of future employment. Wilcox Press Inc. will provide whatever assistance that it can render to assist those employees that are being laid off. The board of directors and management sincerely regret that this action has become necessary and understand the burden that it places on all employees and their families."
Wilcox hopes to have refinancing arranged, which would allow rehiring the laid-off employees, in 30 to 45 days, Eaves said.
Hopefully this will work out well with new financing - letting almost a third of the company's employees go, even temporarily, is a frightening sign.
Posted by simon at October 6, 2006 8:39 AM in Ithaca Journal , Route 13/366 , economy