JACKSON, Tenn. — Whirlpool Corp. said Tuesday that it is eliminating about 5,000 jobs worldwide this year and next — a move that will include 500 layoffs and the closure of the company's plant here, a two-hour drive from Nashville.
The local jobs cuts are a further blow to an area with an unemployment rate of 8.8 percent, one of the highest levels in the state. Whirlpool has been Madison County's eighth-largest employer, according to the Jackson Area Chamber of Commerce.
"This is the beginning of the recession in West Tennessee," said Union University economist Kenny Holt said. The last time a plant closure of this magnitude occurred was in 2001 when Murray closed, cutting 768 jobs. Murray made snow blowers and lawn mowers.
The nation's largest home appliance maker said the cuts are tied to the long-lasting downturn in the U.S. housing market. Whirlpool reported that its earnings fell
7 percent during the third quarter on lower sales and higher material costs. Whirlpool lowered its earnings outlook for the year and announced price increases.
Since January, Whirlpool had announced the closure of four plants in La Vergne, Tenn.; Oxford, Miss.; Puebla, Mexico; and Reynosa, Mexico — a loss of about 2,000 jobs. Whirlpool, whose brands include Maytag, KitchenAid and Jenn-Air, has about 73,000 employees worldwide.
The company said the move to shutter its facility in Jackson means a shift of production from there to its plant in Findlay, Ohio.
James Cupples, owner and president of Whirlpool supplier J&J Co. in Jackson, said he was surprised by the news. "I just thought they were solid," said Cupples.
Holt said pressures on the auto industry and other recessionary factors could cause more layoffs in the area. "There are going to be people who will have trouble paying their bills," the economist said. "There will be those who may lose their homes."
Local government officials said they will look for another industry to take over the Whirlpool building once it is vacant.
City Councilman Danny Ellis said that should be a priority, but city officials also should consider finding ways to help residents open small businesses. "We need … to explore having a small business incubator," Ellis said.
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