Mike GoreyPropex has slashed 30 jobs at its Chattanooga headquarters and another 10 workers at its geotextile plants due to shrinking government spending worldwide.
“We have reduced our corporate headcount, and all of the plants have adjusted their hourly headcount for a new, more focused company,” said Randy Powell, executive vice president of operations for Propex.
The cuts come as the U.S. president and Congress haggle over the depth and nature of tax increases and spending cuts due to hit the economy in January if a budget agreement is not reached to avoid the so-called “fiscal cliff.”
Mike Gorey, president and CEO of Propex, attributed the company’s job losses directly to cuts in government spending.
“We believe a lot of the uncertainty around the roads bill and the fiscal cliff has had a lot of impact on demand from public sector,” said Gorey, who projects that 2013 will look a lot like 2012.