With the 145 layoffs announced Tuesday, the Ames hydraulic, electronic and electronic systems component manufacturer has now shed some 450 jobs since reaching an employment level of more than 1,150 people last year.
The reductions, which come less than two years after an ambitious expansion of company operations in Ames, are a response to a severe contraction in demand for Sauer-Danfoss products, many of which are used in heavy, off-road equipment, such as bulldozers and tractors, according to Matt Bendler, human services director for the company.
But more than that, layoffs amount to "some of the most difficult decisions we, as a company, have ever had to make," he said.
Bendler said the company has offered departing employees:
* A severance package.
* Access to the services of the Palmer Group, an employment services firm in West Des Moines specializing in recruiting, temporary staffing, "high-level contracting" and outplacement.
* Help with accessing state-sponsored unemployment services.
The layoffs cut across all aspects of Sauer-Danfoss operations, including engineering, information technology, shop and machining, and assembly, he said.
"That's just the list of hard skills," he said. "The people we are releasing also have strong 'soft skills,' like the ability to form a team, to engage in problem-solving."
Because so many employees have been laid off, it's been hard for the company to track what's become of them, Bendler said.
"Most of what we've heard is word-of-mouth," he said. "Many of the stories have been good, (and some were) not."
The company is contracting along with the needs of its customers in the construction, road building and material handling vehicle industries.
"It's not just us, it's our competitors as well," Bendler said.
"One of the keys elements in this is the credit market and the inability of our customers to secure the credit they need" to do business with Sauer-Danfoss, he said.
Kerry Koonce, a spokesperson for the Iowa Workforce Development office in Des Moines, said her department offers a set of "rapid response" services in cases where 50 or more employees are laid off. So far, the department has not yet made an agreement with Sauer-Danfoss to provide those services, she said.
Koonce said some of the jobless workers from Ames may find hiring opportunities in "areas like engineering, mid-level information technology and sales."
"But on the manufacturing and assembly side," she said, "Iowa industries have really taken a hit."
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