A Kokomo machining company has laid off 79 workers after a “key customer” decided to get products from another vendor.
Cardinal Metal Finishing, 1500 E. Murden St., announced last month that it planned to lay off the workers because the company lost a “significant amount of business” due to the customer’s decision, according to a notice filed with the Indiana Department of Workforce Development on Sept. 27.
The layoffs took effect on Sept. 26. The company said it has eliminated all the positions at its Kokomo facility and is terminating employment for all the workers who held those positions.
The affected employees will not have “bumping rights” and are not represented by a union. The company said if business picks up in the future, it would consider rehiring the employees.
In the notice, the company said the layoffs were caused by “unforeseeable business circumstances,” which caused for a delayed notice to the state about its move to reduce its workforce.
Calls placed with a company spokesperson were directed to the CEO, who did not immediately respond for a request for more information.
Cardinal Metal Finishing has facilities in Kokomo and Bloomington, and operates in the business of surface preparation and coating of municipal and industrial structures throughout the U.S., according to its website. The company also provides industrial finishing and machining of billet metals, castings and forged parts.
The layoffs come as other major Kokomo employers have added to their workforce, including Green Cubes Technology, AndyMark and EAC Corp.
New data released this month from the Bureau of Labor Statistics has also shown Kokomo to be one of the nation’s fastest-growing economies, ranking fourth in the nation for employment growth.