A.O. Smith announces layoff of 74 employees
Local electrical parts manufacturer A.O. Smith announced a layoff of 74 employees yesterday, approximately 10 percent of the current staff of 730.
According to Ed O’Conner, Vice President of Human Resources and Public Affairs at A.O. Smith’s corporate offices in Milwaukee, the layoff is not a permanent reduction.
“This is a temporary layoff caused by a slowdown in schedules,” O’Conner said.
A.O. Smith is a major manufacturer of electric motors and commercial and residential water heaters, employing some 16,000 workers worldwide.
The company acquired the MagneTek motor division located here in McMinnville about four years ago, according to O’Conner, who said the plant is one of a number of electric motor operations the company owns worldwide.
The motors are used in various applications including furnaces, window fans, air conditioners, and garage door openers.
The company did around $1.2 billion in sales last year.
“The nature of the motor business has a certain element of seasonality to it,” said O’Conner, noting there had been layoffs in the past, but this was the first one in some time.
He couldn’t comment on when the employees might be called back.
“We’re really not in a position now to say how long it will last,” he said. “It really depends on market conditions.”