Pella Corp. cuts dozens of jobs in Sioux Center - KTIV News 4 Sioux City IA: News, Weather and Sports

Pella Corp. cuts dozens of jobs in Sioux Center


SIOUX CENTER, Iowa (KTIV) -- On Tuesday, President Barack Obama and Federal Reserve Chairman Ben Bernanke agreed the US economy is back on the way up, citing stronger retail sales and a national slowdown of layoffs.

But Wednesday, Pella Corporation announced it will lay off dozens of workers in Sioux Center, Iowa by the end of the week.

Right now, Pella Corporation employs 338 workers in Sioux Center, but on Friday, that number will drop to 301 when 37 people will lose their jobs. This follows the layoffs of 86 people back in January.

Pella officials say a 40% drop in new home construction is mostly to blame, so with a weakened demand, the company had to cut.

Pella produces windows and doors at its Sioux Center operation and company spokesperson Kathy Krafka Harkema says people are building more conservatively these days, using less of the company's materials. However, she says these cuts will help Pella stay strong.

"No one can predict the future, but Pella's doing all we can to weather this economic storm. And we've been in business since 1925, we've weathered the great depression, we've weathered wars and the economic downturn of the 1980s. Pella Corp. is confident we will weather this storm," Krafka Harkema said.

Krafka Harkema adds, that products made in Sioux Center are shipped out nationwide, and once other areas of the country start to rebound, business will improve.

Sioux Center's mayor says his city has done a lot to make sure it's economically strong and he's optimistic that once the economy turns around, it will be back to business as usual at Pella.

"It's unfortunate that we have these layoffs, but Pella is a good company and I feel that as soon as those jobs area available again, they'll be hiring those people back," said Sioux Center mayor Dennis Walstra.

In the meantime, Pella is working with Iowa Workforce Development and other local businesses to help those laid off find work.

If you are a local business owner looking for employees, Pella wants to hear from you at (712) 722-3800.

Online Reporter: Zach Tecklenburg

Powered by Frankly