Pacific Insight is laying off part of its workforce and transferring production to a facility in Mexico. File photo

Pacific Insight is laying off part of its workforce and transferring production to a facility in Mexico. File photo

Pacific Insight to lay off part of workforce

The company says it is transferring automotive production to its Mexico facility

Pacific Insight announced Wednesday morning it’s laying off part of the workforce at its facility outside Nelson and transferring production to a facility in Monterrey, Mexico.

Kristine Walczak, vice president of corporate communications at Pacific Insight’s parent company Methode, told the Star she was unable to say how many employees are being let go or how big the workforce is at the engineering firm.

Pacific Insight designs and builds lighting and electronics for the automotive industry. Walczak said layoffs are related to the company’s automotive production, and that about 100 people will stay on at the Nelson facility to work on commercial vehicle production.

Walczak said the layoffs, which will take effect by Oct. 31, were prompted by changes in the automotive industry.

“It’s unpredictable. The economy really just requires us to continually evolve and change,” she said. “Our customers have been pressuring us to improve efficiencies and we’ve seen a lot of pricing pressure in the automotive industry and we just had to respond to that.”

Walczak said employees laid off will be offered severance packages.

Pacific Insight, which is located on Highway 3A, was acquired by the Chicago conglomerate Methode in August 2017 for approximately $144 million.

At the time, the company said it planned to keep all jobs in the Kootenays intact. Despite that, the layoffs had been expected internally, according to a source with knowledge of the situation.

“A lot of people saw the writing on the wall at that time. Since then we’ve been moving contracts, work has been a lot less.”

The Star’s source estimated more than half the workforce in being let go, and was skeptical that Pacific Insight could stay at its current location.

“There are five production lines that run every day, and the majority of the products on those are all for automotive. That takes up more than a third of the floor space, and then another probably quarter or so is dedicated to the after-production of those products. So at least half the machines on the floor will be cleared out of there. I’d say likely more.”

It’s the second time this year that a local business owned by an international corporation has been hit by layoffs. Twenty-seven people were let go in June when Hawthorne Gardening opted to close Can-Filters, which had operated on the North Shore since 1989.

Related:

Pacific Insight purchased for $144 million

Can-Filters closes, 27 Nelson employees let go



tyler.harper@nelsonstar.com

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A mushroom grower plans to plan new mushrooms in fallen trees in the Kaslo Community Forest. File photo
Kaslo mushroom farmer given green light for unique project

Robin Mercy will plant mushrooms in the Kaslo Community Forest

Nelson dancers Glynis Waring, Slava Doval and Amanda Papailhou, and musician Nella Banner, premier Respired on April 11. Photo: Submitted
New dance work the latest online offering from Capitol Theatre

Local performers will unveil Respired beginning April 11

B.C's COVID-19 dashboard shows the peaks and valleys of cases prior to the record daily report of 132 on April 9, 2021. (Dashboard image)
Interior Health has record day of COVID-19 cases

132 cases reported Friday, April 9, more deaths in Vernon hospital outbreak

B.C. Health Minister Adrian Dix and Premier John Horgan describe vaccine rollout at the legislature, March 29, 2021. (B.C. government)
1,262 more COVID-19 infections in B.C. Friday, 9,574 active cases

Province’s mass vaccination reaches one million people

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

RCMP display some of the fish seized from three suspects who pleaded guilty to violating the Fisheries Act in 2019, in this undated handout photo. THE CANADIAN PRESS/HO - RCMP
3 banned from fishing, holding licences after overfishing violations near Vancouver Island

Mounties seized the group’s 30-foot fishing vessel and all equipment on board at the time

B.C. Premier John Horgan responds to questions during a postelection news conference in Vancouver, on Sunday, October 25, 2020. British Columbia’s opposition Liberals and Greens acknowledge the COVID-19 pandemic has presented huge challenges for Horgan’s government, but they say Monday’s throne speech must outline a coherent plan for the province’s economic, health, social and environmental future. THE CANADIAN PRESS/Darryl Dyck
Horgan’s NDP to bring in throne speech in B.C., Opposition wants coherent plan

Farnworth said the budget will include details of government investment in communities and infrastructure

FILE - An arena worker removes the net from the ice after the Vancouver Canucks and Calgary Flames NHL hockey game was postponed due to a positive COVID-19 test result, in Vancouver, British Columbia, in this Wednesday, March 31, 2021, file photo. As vaccinations ramp up past a pace of 3 million a day in the U.S, the NHL is in a tougher spot than the other three major North American professional sports leagues because seven of 31 teams are based on Canada. (Darryl Dyck/The Canadian Press via AP, File)
Vancouver Canucks scheduled to practice Sunday, resume games April 16 after COVID outbreak

Canucks outbreak delayed the team’s season by eight games

Two-year-old Ivy McLeod, seen here on April 9, 2021 with four-year-old sister Elena and mom Vanessa, was born with limb differences. The family, including husband/dad Sean McLeod, is looking for a family puppy that also has a limb difference. (Jenna Hauck/ Chilliwack Progress)
B.C. family looking for puppy with limb difference, just like 2-year-old Ivy

Ivy McLeod born as bilateral amputee, now her family wants to find ‘companion’ puppy for her

A vehicle that was driven through the wall of a parkade at Uptown Shopping Centre and into the nearby Walmart on April 9 was removed through another hole in the wall later that night. (Photo via Saanich Police Department and Ayush Kakkar)
Vehicle launched into B.C. Walmart removed following rescue of trapped workers

Crews cut new hole in parkade wall to remove vehicle safely

Most Read