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274 people found themselves jobless after the Momence Packing Company in Illinois abruptly shut its doors on June 2.
Originally built in 1962 and run by Johnsonville Foods as a sausage manufacturer since 1995, it was a gut punch to a tight-knit community that has worked at the facility for over six decades.
Employees were called to a meeting in a nearby town, Kankakee, where Johnsonville’s CEO delivered the shocking news: The Momence facility was closing, effective immediately.
Among those affected was Lupe Hernandez, who worked there for 25 years and 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.
“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,” Tim Nugent, president and CEO of the Economic Alliance of Kankakee County, said. “If they’re investing in infrastructure, it means that they made plans to stay around for a while.”
In a statement to ABC7 news, Johnsonville wrote that, “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.”
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.
The company pledged to continue providing pay and benefits to impacted workers for 60 days, adding it would work through additional terms of a separation package over the following weeks.
That’s some help, but Hernandez had planned to work three more years to pay off her house.
As of June, the U.S. unemployment rate stood at 4.1%, similar to what the country’s seen over the past year.
Jobs continue to be added — 147,000 positions in June — and weekly unemployment benefits have shown a slight improvement. Jobless claims for the week ending July 12 came in at 221,000, down 7,000 from the previous week’s revised level of 228,000. This means slightly fewer people made claims than was expected.
Nevertheless, those numbers are still significant. And for every American impacted by a surprising layoff or shutdown, the risk of falling into consumer debt traps significantly increases.
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.
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 was banking on several more years of work to finish paying her mortgage.
One action worth taking right off the bat is to assess all of your monthly costs and how these fit in with your new monthly budget.
Try to identify any regular payments that drive down your monthly spending power, or areas where you can cut costs. If you’re paying into insurance, a little bit of shopping around could give your budget a boost.
For instance, OfficialCarInsurance.com helps you switch to a more affordable auto insurance option within minutes.
Simply provide some information about yourself and your vehicle, then compare quotes from trusted brands like Progressive, Allstate and GEICO. Some offers are even as low as $29 per month depending on factors like the make and model of your car and your driving history.
Many providers allow you to switch policies even when they aren’t up for renewal, just make sure to check that there aren’t any hidden fees.
For home owners, OfficialHomeInsurance.com can help you find great rates to protect your home. All it takes is two minutes for them to comb through over 200 insurers — for free — to find the best deal in your area.
If you’ve been laid off, and are close to retirement, you may have to delay it until your financial situation has stabilized.
This can take a lot of time, effort and attention. If you’ve already been investing for retirement, taking some of the mental load off of managing your retirement investments may be a good idea.
That’s where automatic investment tools like Acorns come into play. Purchases made on your linked credit or debit card are automatically rounded up to the nearest dollar and put into a smart investment portfolio of ETFs. That way, every dollar you spend goes automatically towards your investments, which could also help you get a handle on your debt.
Even better, Acorns gives new members a $20 bonus investment on sign-up when you set up a recurring payment.
This type of emergency situation raises awareness for just how important a rainy day fund is. You can start small — such as with $25 a week — and eventually build a better buffer.
To do so, it can help to have a crystal-clear view of your finances so you know exactly how much you can put away. This is where budgeting platforms like Monarch Money come in. The app gives you a top-down perspective on all of your income, debt and investments when you link your accounts. In a post-employment situation, this can help you keep track of essential line items like severance or other unemployment benefits.
The best part? Monarch Money is offering a 7-day free trial so you can see if it helps with planning for that better buffer. If you decided that the platform is right for you, they are also offering 50% off with code MONARCHVIP if you sign up for a yearly subscription.
While you’re getting your accounts in order, it’s just as important to remember to reach out for help in the short term.
Hernandez was given 60 days of pay and benefits following her termination, but not everyone gets even that much. Make sure to apply for unemployment benefits immediately and file claims to reduce income gaps as much as possible. It’s also a good idea to tap into any state-specific resources that might be able to paper over the difference.
Finally, make sure to look into career centers and community colleges for resume development workshops. If, like Hernandez, you’ve spent a chunk of your life with one employer, it’s important to get up-to-date advice on the job market.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
