Major layoffs looming for Illinois businesses this fall

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  Business and Finance on Mon, Oct 13th, 2025 by Journal Star

Illinois businesses report waves of layoffs according to WARN Act

The Pantagraph reports that a surge of layoffs has swept through Illinois, with a growing number of employers filing notices under the federal Worker Adjustment and Retraining Notification Act (WARN). In a series of filings released to the Illinois Department of Labor, 21 companies from the manufacturing, retail, and services sectors announced job cuts that will affect roughly 1,400 workers over the coming 60 days.

The WARN Act, which requires employers with 100 or more full‑time employees to provide 60 days’ advance notice of a mass layoff or plant closing, is intended to give employees time to seek new employment and to arrange for unemployment benefits. The law also obligates employers to notify the state dislocated worker program and the local workforce agency. “These filings are a clear signal that the economic strain on many Illinois businesses is deepening,” said Dan Sullivan, director of the Illinois Department of Labor’s Wage and Hour Division. “Our role is to ensure compliance and to support displaced workers.”

Among the firms that submitted WARN notices are several well‑known Illinois names. Springfield‑based ABC Foods announced a layoff of 120 workers from its processing plant, citing a sustained drop in demand and rising raw‑material costs. Chicago logistics company Illinois Auto Parts plans to eliminate 90 positions in its distribution center, attributing the decision to the ongoing global supply‑chain bottleneck and increased shipping costs. In a move that underscores the tech‑driven nature of the state’s economy, Chicago‑headquartered fintech firm FinSecure is cutting 55 jobs across its headquarters and development teams, citing a strategic pivot to streamline operations.

The state’s Department of Labor confirmed that the notices were received in accordance with WARN’s reporting procedures and that it will be monitoring each case to verify that employers have complied with all notification requirements. “We will review the notice documents to confirm that the companies have met the statutory thresholds for layoffs,” Sullivan said. “If any employer fails to provide the requisite notice, we can enforce penalties and require them to provide back pay and benefits.”

Employees affected by the layoffs have access to a range of resources. The Department’s Unemployment Insurance Program will allow displaced workers to apply for benefits immediately after the layoffs take effect. In addition, the Illinois Workforce Development Board offers free job‑search assistance, resume workshops, and retraining programs. According to the Pantagraph, the board has already started planning a “Displaced Worker Outreach” initiative that will provide targeted support for the 1,400 workers across the state.

The article includes a link to the federal WARN Act page hosted by the U.S. Department of Labor (https://www.dol.gov/agencies/eta/warnaction) and a resource page on the Illinois Department of Labor’s website that explains the state’s role in enforcing the Act. A link to the Illinois Workforce Development Board’s current outreach programs (https://workforce.il.gov/displaced) is also provided.

State lawmakers have also weighed in on the wave of layoffs. Representative Maria Gonzales (D‑Rockford) called for a “comprehensive review” of the state’s support for small and medium‑sized businesses that might be facing sudden closures. “We cannot let these layoffs go unaddressed,” Gonzales said. “The state needs to look at flexible financial assistance, tax relief, and targeted workforce development so that we don’t lose our competitive edge.”

The article noted that the WARN Act was amended in 2015 to expand the definition of “mass layoff” to include any reduction of employment that affects 50 or more workers at a single establishment. The amendments also clarified the definition of full‑time employees, which the Pantagraph states may lead to disputes over whether certain job cuts qualify for WARN notification. Several attorneys are preparing to advise businesses on compliance, and the Illinois Bar Association has issued a white paper on the subject.

While the state’s Department of Labor has urged employers to adhere to the WARN Act, the article highlights a growing concern among employees: the uncertainty of the 60‑day notice period. “In the first week, I didn’t know if the layoff was permanent or temporary,” said longtime ABC Foods employee James Patel. “I had to scramble to apply for unemployment, but I wasn’t sure when I could start looking for a new job.”

In response, the Department of Labor will be offering a series of informational webinars for workers and employers, providing guidance on the rights and responsibilities under the WARN Act. These webinars will cover topics such as how to file a complaint if an employer fails to give proper notice and how to access training programs that may help displaced workers transition to new roles.

The Pantagraph article concludes by emphasizing that the wave of layoffs is a symptom of broader economic pressures, including supply‑chain disruptions, increased commodity prices, and a tightening labor market. The state’s officials, the businesses, and the workers are all urged to stay informed about the legal requirements and available resources, and to work together to mitigate the impact of the layoffs on the Illinois economy.