Kohler Co. announced a reduction in its workforce of 450 administrative and production positions and 300 temporary positions in multiple locations across the U.S.  The workforce reduction impacts only the company’s plumbing operations in the U.S., where production is linked to new build and renovated housing.

“These are challenging times which require making difficult decisions, none more difficult than when they involve our associates,” said Jim Westdorp, President of Kohler’s Kitchen & Bath Group.  “The housing market, which plummeted to an all-time low during the economic crisis some 18 months ago, has not rebounded as we had hoped.  Housing remains battered with no signs of a U.S. recovery on the horizon.”

Despite historically low interest rates, builders are building only for those persons employed who can meet tougher mortgage requirements, and consumers are hesitating to invest in remodeling for fear of not recovering the cost through improved home value.

Herb Kohler, Chairman and CEO, reminded that “the economic recovery will begin when consumers have confidence in the stability of their jobs, in the potential upside in the value of their homes, and they are not hit with a prolonged stream of higher taxes.”

These layoffs directly impacted the local Brownwood Plant with 88 production and administrative jobs reduced within the plumbing operations.

“The 88 positions were permanent production and administrative,” stated Todd Weber, Media Relations of Kohler Co. when questioned about the impact on the Kohler factory located in Brownwood.

Positions in Brownwood related to nearly 20% of the 450 jobs cuts in the administrative and production positions eliminated nationwide by Kohler this week.

Founded in 1873 and headquartered in Kohler, Wis., Kohler Co. is one of America’s oldest and largest privately held companies. Kohler is a global leader in the manufacture of kitchen and bath products, engines and power generation systems, cabinetry, tile and home interiors, and an international host to award-winning hospitality and world-class golf destinations.