The Eastern Company announced it has commenced a workforce reduction initiative aimed at decreasing operating costs. This strategic move is part of the company's broader efforts to enhance operational efficiency. The reduction impacts salaried headcount across its Eberhard, Velvac, and corporate offices.
This workforce adjustment is expected to yield approximately $4 million in annual cash cost savings, beginning in 2026. The cost savings are a direct result of the headcount reductions and the restructuring of Big 3 Precision Products. The company is focusing on streamlining its operations.
The restructuring at Big 3 Precision Products included closing the Dearborn, Michigan facility and a warehouse, consolidating production in Centralia, Illinois, and establishing a smaller facility in Sterling Heights, Michigan. These actions, alongside the workforce reduction, impacted 60 jobs. The company aims to improve its structural competitiveness and long-term profitability.
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