Natural Fiber Welding Lays Off Workers in Peoria as Part of Workforce Reduction

Natural Fiber Welding Lays Off Workers in Peoria as Part of Workforce Reduction

WPBN: It was announced on Tuesday that Natural Fiber Welding, a company based in Peoria, had laid off a significant number of employees, marking yet another downsizing move by a company that city officials had placed as an anchor for a new tax-increment financing district.

According to recent records, NFW has decided to terminate the employment of 91 employees due to unanticipated business circumstances. Natural Fiber Welding’s buildings on Galena Road, Water Street, and Jefferson Street are among the facilities in Peoria that will be affected by the layoffs.

However, according to emails issued by the chief human resources officer of NFW, these locations will not be closing down. Dozens of employees will be affected by the layoffs.

“Over the past month, NFW has faced significant challenges that required tough decisions to ensure the company’s long-term success,” a company spokesperson stated. “These included the difficult step of restructuring, which has impacted many of our valued team members. We are deeply grateful for the contributions of every individual who has been part of our journey. ”

NFW, which was established in 2015, quickly became well-known as an environmentally conscious textile firm. In an interview with the Journal Star in 2022, Natural Fiber Welding was compared to “computers in the ’70s” by Luke Haverhals, who had previously served as CEO of the company. There were approximately 250 people working for NFW at the time, and the organization intended to add “hundreds more.”

However, since then, the corporation has been experiencing difficult times, as evidenced by layoffs both this year and in 2023. The decision that was made on Tuesday was referred to as “restructuring” by NFW, which also reaffirmed its dedication to achieving success.

“Despite the challenges, we have successfully closed a funding round, backed by our dedicated shareholders, which has provided the resources needed to stabilize for renewed growth,” according to a spokesperson “Under the guidance of our new CEO, Steve Zika, and with our board of directors, a reshaped NFW will move forward as a leaner, more focused organization. We are more than 100 team members strong at this time and we remain committed to serving our core mission of innovating biomaterials to help solve the plastic crisis from our home base in Peoria, IL.”

There is little doubt that the success of Natural Fiber Welding will be something that will be on the radar of the politicians in Peoria. In the Galena Road Tax Increment Fund (TIF), which was established for the region surrounding the company’s headquarters, NFW is one of the anchor businesses.

This Tax Incentive Fund (TIF), which included a proposal to construct a business park at a cost of forty million dollars, was expected to bring in thirty-five million dollars in public cash and approximately sixty-five million dollars in private investment.

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Melissa Sarris is a dedicated local news reporter for the West Palm Beach News. She focuses on accuracy and public interest when she covers neighborhood stories, breaking news, and changes in local government. Melissa likes to explore new places and help out at neighborhood events when she's free.