ABB mass layoff in Phoenix to begin next month

ABB, a global leader in power electronics and automation, will be ceasing its U.S.-based manufacturing operations at its Phoenix production plant, jeopardizing 89 jobs.


ABB, a global leader in power electronics and automation, will be ceasing its U.S.-based manufacturing operations at its Phoenix production plant, jeopardizing 89 jobs.

The company announced the layoffs in a letter at the end of May, and informed the Arizona Department of Economic Security that the mass layoff would occur in at least four phases.

“The first phase will occur on August 31, 2016 or within 14 days thereafter,” Christen Fox, Human Resources Director, wrote. “The second phase will occur on September 30, 2016 or within 14 days thereafter. The third phase will occur on October 28, 2016 or within 14 days thereafter. The fourth phase will occur on November 18, 2016, with the final phase being December 16, 2016.”

The facility will be moving to a new location, Fox noted, and the affected employees have been notified of the dates of their intended layoffs.

“The employees are not represented by any unions, Fox wrote. "No bumping rights exist at the facility. ABB will offer severance benefits to qualified employees."

The production plant, which is located near the Sky Harbor International Airport, will remain open to support a number of sales and service operations, but by this fall, the manufacturing jobs will be shipped to Latvia and Italy.

The Swiss-based company expanded into the U.S. in 2013 after it acquired U.S. inverter Power-One Inc. for an estimated $1 billion. Included in the deal was the acquisition of the Phoenix facility, which employed 450 staff at the time.

Founded in 1883, ABB is a multinational manufacturing and industrial company that “enables utility, industry, and transport and infrastructure customers to improve their performance while lowering environmental impact.” The international company operates in approximately 100 countries and has about 135,000 employees worldwide.

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