Email This Story
Print This StoryHoover's Restructuring To Leave 1,100 Without Jobs
Plant Will Move To Iowa
UPDATED: 12:14 pm EDT June 5,
2004
NORTH CANTON, Ohio -- There is more bad news for northeast Ohio's economy.Hoover announced today that it will get rid of 20 percent of the workforce in an effort to consolidate and save money, NewsChannel5 reported.
As part of a huge restructuring move, Hoover will move part of its operation from North Canton to Maytag's headquarters in Newton, Iowa, to become one company.About 1,100 jobs will be lost. Hoover's restructuring comes on the heels of the recent announcement of Timken's closing its doors. Hundreds will be left without jobs in that closing.Hoover sales have dropped and before this major change to business, Hoover made other changes, but sales continued to drop.Maytag Chairman and chief executive officer Ralph Hake talked with NewsChannel5 over the phone and said that closing the plant is the only choice the company had in order to make some profit this year."About 500 salaried positions are expected to be eliminated from across the Hoover organization, including the North Canton facilities, southwest operations, field sales and service," Hake said. "However, most of the reductions will come from the headquarters in North Canton."The restructuring move is expected to be completed by the end of the year. It is believed it will save Maytag $150 million annually.
As part of a huge restructuring move, Hoover will move part of its operation from North Canton to Maytag's headquarters in Newton, Iowa, to become one company.About 1,100 jobs will be lost. Hoover's restructuring comes on the heels of the recent announcement of Timken's closing its doors. Hundreds will be left without jobs in that closing.Hoover sales have dropped and before this major change to business, Hoover made other changes, but sales continued to drop.Maytag Chairman and chief executive officer Ralph Hake talked with NewsChannel5 over the phone and said that closing the plant is the only choice the company had in order to make some profit this year."About 500 salaried positions are expected to be eliminated from across the Hoover organization, including the North Canton facilities, southwest operations, field sales and service," Hake said. "However, most of the reductions will come from the headquarters in North Canton."The restructuring move is expected to be completed by the end of the year. It is believed it will save Maytag $150 million annually.Copyright 2004 by NewsNet5. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
