Pella Corporation announces Voluntary Separation Incentive Program

Pella Corporation, Pella Iowa

Pella, Iowa –Pella Corporation started asking its employees for Voluntary Separation. This program, started in October, gave employees options and incentives to retire early, or to move to other jobs outside of Pella Corporation.
Pella Corporation Spokesperson Kathy Krafka Harkema informed me they are looking to cut about 250 jobs voluntarily, through early retirements or voluntary separations. Kathy said that they are attempting to align with current needs with such a prolonged downturn in the housing market.
“New home construction has dropped as much as 60 to 70 percent in the U.S. from the record levels of just a few years ago, dramatically decreasing demand for building materials, as consumer confidence remains weak,” said Pella Heritage Division President Denny Van Zanten. In addition to the 250 jobs in Pella, Iowa, they also recently announced the closing of their Fairfield Ohio manufacturing facility.

Fairfield, Ohio — Pella Corporation plans to close its Fairfield Ohio manufacturing operations, employing 198 people, as a result of the housing market plunge. Based on current projections, the door manufacturing plant is expected to close sometime in mid-to-late 2011.

Once the Fairfield plant closes sometime next year, Pella will continue to offer its entry door systems for sale. Entry door operations will be moved to Pella’s largest manufacturing facility in Pella, Iowa.
“Transitioning manufacturing to a centralized location where we already create patio doors will optimize the cost of operation and cut shipping time as we continue to serve customers with Pella entry door systems,” Van Zanten said.

Pella plans to partner with area employers and state and local officials to help identify new potential careers for those who want to remain in the greater Cincinnati region.