Rheem to cut 50 management jobs in Fort Smith (Updated)

Rheem is reducing 50 salaried positions from its Fort Smith manufacturing operation as part of a companywide move to cut jobs by offering early retirement packages.

On May 21, the company sent memos to all Rheem employees older than 55 years and with 20+ years of service with the company. The employees have until close of business on June 1 to decide if they will take the early retirement. According to a memo from Rick Lolley, division director of human resources for Rheem, the early retirement is part of a “reduction-in-force program based on business conditions.”

Lolley’s media statement issued late Tuesday did not mention details of the early retirement offers, other than to note that pension benefits, extended insurance coverage and a transition allowance were included in the offer.

Chris Peel, Rheem’s chief operating officer, said in early February the “precipitous drop in new construction and the global economic crisis” resulted in a 40% drop in business, and was forcing the company to take serious measures. Part of that included the decision in February to close a plant in Milledgeville, Ga., and consolidate the operations there at company plants in Fort Smith and Nuevo Laredo, Mexico.

UPDATED INFO: According to Lolley, Rheem’s Fort Smith plant now has 308 salaried positions and 1,068 production jobs. The company manufactures and distributes commercial and residential air conditioning and heating units from its Fort Smith plant.