Jun 13, 2025
When the Momence Packing Company, in Illinois abruptly shut its doors on June 2, 274 people found themselves jobless.
It was a gut punch to a tight-knit community that has worked at the facility — a pillar of local employment for over six decades, originally built in 1962 and run by Johnsonville Foods as a sausage manufacturer since 1995.
What went wrong?
Employees were called to a meeting in nearby Kankakee where the Johnsonville CEO delivered the shocking news: the Momence facility was closing, effective immediately.
Advertisement
Among those affected was Lupe Hernandez, a 25-year veteran, who told ABC7 News, “It’s like they didn’t even care about us, you know? [The] same day?"
Momence mayor Charles Steele said he only got a 15-minute heads-up from the company. Other local leaders were blindsided too.
“It’a just very devastating. Very heartbroken… What can we do?” asked Hernandez.
"When I was out there a couple weeks ago, the plant manager talked about over $1 million worth of equipment that had recently been installed," recalled Tim Nugent, president and CEO of the Economic Alliance of Kankakee County.
"If they're investing in infrastructure, it means that they made plans to stay around for a while," which made the closure feel abrupt and contradictory.
Johnsonville stated, "We made the difficult decision after evaluating how best to optimize our operations network to address current and future growth. This decision was based on optimizing our operations across our other newer facilities."
Advertisement
The company also pledged to continue providing pay and benefits to impacted workers for 60 days. That’s some help, but Hernandez planned to work for three more years to pay off her house.
The newer facilities include two in Wisconsin and one in Kansas. Johnsonville expects to create about 100 new jobs by the end of its third quarter between the two Wisconsin locations. It plans to demolish the Momence facility by the end of the year and transfer its assets to other facilities.
Must Read
- You can now build wealth like a landlord for as little as $100 — and no, you don't have to chase down rent or take 3 A.M tenant calls
- Goldman Sachs used to hoard prime real estate deals for the ultrarich. Two ex-analysts just opened the door for $250
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Unemployment in America — and getting through tough times
As of May, the U.S. unemployment rate stood at 4.2%, similar to what the country's seen over the past year.
While jobs continue to be added — 139,000 positions in May and 177,000 in April — weekly unemployment benefits claims are ticking up. In the week ending May 31, 247,000 initial applications were filed. This is the highest since October.
Unemployment or reduced income significantly increases the risk of falling into consumer debt traps. Without a consistent paycheck, people often rely on credit cards or loans to meet basic expenses. U.S. credit card debt topped $1.18 trillion in Q1 2025.
Advertisement
And for those nearing retirement age, losing a long-held job can spark financial crises involving mortgage payments, dwindling savings and health care expenses. Hernandez is an example of one such Johnsonville worker, as she planned to work three more years to pay off her home.
What affected workers can do
File for unemployment benefits With 60 days of paid benefits, these workers should immediately file claims to reduce income gaps.
Tap local resources State-sponsored career centers and community colleges provide resume help, certifications and class enrollment at little or no cost.
Pivot quickly to part-time or gig work Delivery driving, warehouse roles, administrative jobs or trades may serve as interim income sources. Many workers can also take seasonal jobs while searching for a longer-term replacement role.
Reassess retirement and debt strategy For those close to retirement, delaying retirement and tightening budgets may be essential until new employment or savings bridges the gap.
Rebuild financial resilience Workers can use the crisis to start an emergency fund — a small amount, such as $25 per week, can eventually build a buffer.
Retrain Exploring job training or apprenticeships aligned with local demand, such as healthcare or logistics, can offer a fresh start.
You May Also Like
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
- Robert Kiyosaki issues grim warning for baby boomers. Many could be ‘wiped out’ and homeless ‘all over’ the country. How to protect yourself now
With a writing and editing career spanning over 15 years, Emma creates and refines content across a broad spectrum of industries, including personal finance, lifestyle, travel, health & wellness, real estate, beauty & fitness and B2B/SaaS/tech.
