Business & Tech

Hauppauge Biz to Cut 125 Jobs, Move to MidWest

Festo says it will cut 125 jobs of its 250 Hauppauge workforce, as customer base has shifted to south and west.

A Hauppauge industrial company says it plans to eliminate 125 local jobs to open new offices in the midwest by 2016. 

Newsday reports Festo, a seller of automation equipment used in factories, will cut 125 of the 250 jobs at its Hauppauge offices on Moreland Road by 2016 to move to the Cincinnati area. 

Festo, based in Germany, said it has outgrown its U.S. subsidiary offices at 395 Moreland Road and plans to move closer to its customer base, which has shifted to south and west over the years.

The company plans to open a 175,000-square-foot plant and warehouse on 45 acres in southern Ohio or northern Kentucky. It has been offered tax breaks and other incentives by governments there.

By moving to the midwest, Festo said it will be able to deliver 75 percent of its products to customers in one day, compared to 40 percent in Hauppauge. 

The company informed local employees of plans to move to a new factory and warehouse in September. Hauppauge-based workers will be allowed to apply for the same jobs in the midwest, and if hired, given the same rate fo pay and having moving expenses reimbursed. 

Read more on Newsday [subscription required]. 
 


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