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Mayor Reacts to Austin Packaging Company Layoffs

Posted at: 03/25/2013 10:46 PM
By: James Wilcox

(ABC 6 NEWS) -- It was an announcement city leaders knew could be coming, but Monday their fears were confirmed. The Austin Packaging Company announced 125 workers will soon be out of a job, about half of the company's workforce.

"It's 125 jobs. That's 125 families, so we're talking about 400 to 500 people possibly being affected," says Austin Mayor Tom Stiehm.

Austin Mayor Tom Stiehm says the citysays the city will feel a ripple effect as workers from the Austin Packaging Company go unemployed.

"It's taxpayers. It's tax dollars that's coming in. It's business, it's housing, it's everything," says Mayor Stiehm.

At the start of April, APC will close its frozen pizza division. The move comes following declining sales with its clients, which APC makes pizzas for.

The company says it wasn't expecting the layoffs to come so quickly, now the city is figuring out how to respond.

Mayor Stiehm says, "What do we do to help the people that lost their jobs? Is there anything we can do to help the company so that they can maintain their vitality and keep their company going in Austin?"

A city the mayor says has been doing fairly well economically, citing growth at The Hormel Institute and Hormel Foods.

"It's been a bad economy since 2008. We've been kind of weathering it very well and finally we've got a little bit of bad news. We're going to try to minimize the affect of that bad news and keep moving forward," Stiehm says.