Read our editorial on imperialist lies of economic boom here, and the prolonged economic crisis of US imperialism here.
In recent weeks, several companies have announced layoffs at manufacturing plants throughout the country, citing overproduction and economic slowdown.
The North America branch of Daimler, a truck manufacturer, has announced that it will layoff around 2,000 workers across five facilities in the US and Mexico on Friday (07/18). Spokesman Andy Johnson cited “a notable slowdown in new truck orders” as justification for the layoffs.
Eaton Corporation, an electrical product manufacturer, announced layoffs on July 9 at their manufacturing plant in Kearney, Nebraska, resulting in about 200 workers being out of work. Nebraska Public Media reports that “The job cuts by Eaton are the largest in what has become a growing wave of layoffs over the past couple of months in Nebraska,” demonstrating the crisis is reaching new depths.
Automotive roof supplier Webasto laid off 134 non-unionized workers at its plant in New Hudson, Michigan, about an hour from Detroit. Vice president of Webasto’s People and Organization department Corey Stowell said that the layoffs were a “direct consequence of reduced production volumes, a factor beyond Webasto’s control”. Of the 134 workers, 87 were production operators, showing how the lower strata of the working class is hit hardest by the crisis.
This is the second mass-layoff that Webasto has carried out this year, with it permanently closing its Rochester Hills, Michigan plant from February to July, resulting in 244 employees being out of work. A stark contrast from 2021, where it faced pressure from Ford to rapidly expand operations to keep up with demand.
Imperialism inevitably suffers from cyclical crises, today a crisis of overproduction, where the ruling class produces more than can be consumed and carries out the destruction of the productive forces in order to compensate. The working class, particularly its lower strata, takes the brunt of the imperialist crisis through layoffs, reduced hours, and pay cuts. A recent report from the US Department of Labor indicates yet another increase in inflation in June, with prices rising at its fastest pace since February. Despite Trump having campaigned on ending inflation, pay cuts and layoffs continue to be imposed on workers regardless of who is in office.
Image: Workers at the now-closed Webasto plant in Rochester Hills, Michigan. Source: Screenshot from video by Webasto Group on YouTube.
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