Marina
In a substantial shake-up for the region, Gates Corporation’s facility in Iola, Kansas is slated to lay off 110 employees over the coming months.
This announcement, made in a WARN notice to Kansas officials, sends ripples through the community — and raises questions about the future of manufacturing in eastern Kansas.
The Layoff Plan: What We Know So Far
The WARN (Worker Adjustment and Retraining Notification) notice filed on October 2, 2025 reveals that 110 roles will be eliminated at the 1450 Montana Road, Iola site.
The cuts will take place in two stages: the bulk on December 1, 2025, and a smaller group on January 1, 2026. The reduction is described as permanent.
Gates indicates that this layoff is primarily due to the complete cessation of HFM (Hydraulics Flexible Mandrel) manufacturing operations at the Iola site.
A few additional positions unrelated to HFM will also be eliminated, but the plant’s other operations are not affected at this time.
Local news reports suggest that about 80 of the affected jobs are within the manufacturing division, representing roughly one-third of the local production workforce.
Some sources frame the reduction as affecting nearly 30 % of all jobs at the site.
Gates Corporation is headquartered in Denver, Colorado, and specializes in fluid power and power transmission solutions.
The company employs more than 15,000 people worldwide across multiple facilities and states. Though this specific layoff is localized, it reflects broader cost pressures and changes in demand within industrial and manufacturing sectors.
Timing & Scope: Who’s Affected When
1. Phase 1 – December 1, 2025
The majority of the separations are scheduled for this date, affecting mostly manufacturing / production roles tied to the HFM line.
2. Phase 2 – January 1, 2026
A smaller group of employees in auxiliary or overlapping functions will be let go at this point, wrapping up the layoff action.
Some local reports note that about 80 of the 110 are tied to the manufacturing side, which suggests ~30% cut in that division alone. Others cite it as nearly one-third of the entire facility’s staffing.
Notably, the WARN notice confirms that no other plant operations beyond HFM are currently impacted.
Community & Economic Impacts
This layoffs announcement strikes at the heart of Iola’s manufacturing base. Several repercussions are already emerging:
- Local unemployment pressure: 110 dislocated workers adds strain to services, social safety nets, and job placement efforts.
- Economic ripple effects: Nearby suppliers, small businesses, and service industries may feel lost business.
- Job fair / support efforts: Local economic development and state agencies are mobilizing a “rapid response” to help affected workers find new roles. Some reports indicate a job fair planned for November linking impacted workers with regional employers.
- Community morale: After decades of operations, the shake-up signals uncertainty in regional manufacturing stability.
Why Did This Happen? Underlying Causes
The company cites strategic restructuring: the complete shutdown of HFM production at Iola is the main driver.
That move likely reflects changing market conditions, cost pressures, or shifting product demands in hydraulics, automotive, or fluid systems sectors.
While that is the official explanation, observers suggest:
- The HFM product line may have become less profitable or obsolete.
- Broader industrial headwinds, supply chain disruptions, or raw material costs may have eroded margins.
- Automation or consolidation of operations to other plants could factor in.
Importantly, the layoff is described as permanent, not a temporary reduction — indicating Gates does not plan to resume HFM work at this site.
Steps Forward & Mitigations
Here are the paths the region and affected employees are exploring:
- Retraining & reemployment programs: The Kansas Department of Commerce and KansasWorks will be involved in helping workers with reemployment.
- Job fairs & networking: Local agencies plan to connect impacted staff with other manufacturing firms.
- Community support: Economic development groups are pushing to retain workers locally, possibly attracting new investment.
- Worker resources: Severance, benefits continuation, and unemployment support will be critical for the transition period.
The plant’s non-HFM operations remain intact for now, offering some stability to unaffected roles.
The decision by Gates Corporation to slash 110 jobs at its Iola, Kansas facility marks a significant blow to the region’s industrial landscape.
With the permanent shutdown of the HFM division, the local community grapples with lost wages, employment uncertainty, and economic strain. While support systems and reemployment programs are mobilizing, the path ahead is challenging.
Still, this moment also presents an opportunity: diversification, retraining, and renewed investment may help eastern Kansas build resilience.
For now, the people of Iola and nearby communities will feel the weight of this major layoff — one that underscores the fragile balance of modern manufacturing in small-town America.