Gillette to cut 215 jobs in S. Boston
Devens plant will be closed; work going to Poland, Mexico
Procter & Gamble Co. yesterday unveiled plans to shutter its plant at Fort Devens and shed 215 jobs from Gillette's South Boston headquarters, the first major swipe at the world shaving facility.
The cuts are the latest move by the Cincinnati company to trim jobs in Massachusetts since it acquired Gillette in 2005, one of a series of major takeovers of local firms by out-of-state corporations. But P&G, which plans to shift some Massachusetts operations to Poland and Mexico, said it will continue to invest in South Boston.
The Devens factory employs about 400 contractors who package razors, shaving cream, and other goods.
The job cuts in South Boston represent about 9 percent of the 2,400 Massachusetts workers employed by P&G. About 50 or 60 employees will be transferred to a P&G plant in Andover, but most of the operations are being moved to Mexico and Poland. The Devens work will be transferred to Mexico.
"All of these moves are critical to the future success of the blades and razor business," said P&G spokeswoman Kelly Vanasse. "These changes make us able to better serve the needs of the regions where these products are going to be sold and also bring some cost efficiencies."
P&G said it will continue to invest $100 million in South Boston's Gillette shaving headquarters. It plans to add a $35 million unit that will enable the site to generate its own energy. It also plans to spend $50 million moving the global grooming business unit from the Prudential Tower to a permanent spot in South Boston.
"Though this move might temporarily result in job losses, it shows the company is making a real investment in the city of Boston and in Massachusetts," said Mayor Thomas M. Menino.
Still, the most recent cuts are a blow to Gillette's Massachusetts workforce, particularly at Devens, where a group had fought to keep the plant open after P&G closed its other plant there and laid off 100 workers in May 2006.
Merrimack Valley Project, a Lawrence coalition of church and labor organizations that had criticized the two facilities on the former military base for alleged labor violations, saying the company employed migrant workers at low wages, released a report after the first plant closed to outline the negative economic impact if the company shut down the second plant. At the time, P&G said it had not decided what to do with the second plant.
The Rev. Victor Jarvis, president of the project, said the group received a call yesterday before the company's announcement. He said P&G said it will work to ensure the rights of the temporary workers, but the project plans to meet Sunday to outline a plan of action.
"You can tell me anything with words," he said. "But words can go away. Once it's written, it's right in front of your face."
P&G said the job cuts in South Boston are the result of shifting manufacturing of its older shaving systems, like Mach3 and Venus, to P&G sites in Poland and a new facility in Mexico. The South Boston site will serve as the home for newer shaving technologies, like Fusion and Venus Embrace.
The older technologies are flagship brands in developing markets, so the company said it plans to move production closer to those markets. As a result, Gillette said it will need 215 fewer positions by 2013. The company said a majority of the cuts will be managed through attrition, voluntary separation, and retirement.
The Andover plant, which manufactures aerosols and shaving care products, will add packing and warehousing operations once the second Devens factory closes. The facility in Mexico will take over the majority of the packaging and warehouse operations from the Devens plant. The remaining operations will be shifted to Mexico in 2010, when P&G's lease expires in Devens and the plant will officially be closed.
Angel Jennings can be reached at ajennings@globe.com. Globe staff reporter Jenn Abelson contributed to this report.
