Acme Brick to End Jonesboro Production Dec. 31, Affecting 27 Employees

JONESBORO, Ark. — Acme Brick will end brick production at its Jonesboro plant Dec. 31, affecting 27 employees, the company’s human resources director confirmed to NEA Report.

The company’s sales office, yard and distribution operations in Jonesboro will remain open to serve the public and local contractors, said Gary Grant, director of human resources.

NEA Report obtained an Oct. 23 letter from a source affected by the layoffs. The letter, signed by Acme Brick President Ed Watson, lists Jonesboro among three brick plants slated for closure, along with Montgomery and Tulsa.

NEA Report contacted the local plant office, which referred questions to the office manager, who then referred them to Grant. When contacted by NEA Report, the Jonesboro plant manager politely declined to comment.

Grant confirmed that the scheduled last day of brick production in Jonesboro is Dec. 31, 2026, and that 27 employees at the location will be affected.

Company Cites Market Conditions

“These changes are part of an effort to better align our operations with market conditions, improve profitability and position Acme for long-term success,” Grant said. “Our focus remains on serving our customers and strengthening the business for the future.”

Watson’s letter said company leaders met with employees at affected locations Oct. 22 before sharing the announcement more broadly the following day.

The company was developing transition plans and timelines for individual locations, according to the letter. Those plans would account for employees, customers, order commitments, inventory and operational needs.

Watson wrote that Acme’s business peaked in 2022, but profitability had not returned to levels the company considered acceptable. The outlook for sustainable growth at several locations remained limited, he said.

Severance Based on Years of Service

The spouse of one employee affected by the layoffs criticized the severance offered.

A severance policy page provided to NEA Report outlines benefits based on length of service for eligible full-time employees scheduled to work at least 30 hours per week:

• Less than 90 days: No severance.
• 90 days to 12 months: One week of pay.
• One to five years: Two weeks of pay.
• Six or more years: Two weeks of pay plus an additional half-week of pay for each year of service beyond five years.

The policy gives an example of an employee with 30 years of service receiving 14.5 weeks of pay. Total severance is capped at 26 weeks and generally paid in a lump sum.

Eligible employees must sign a release agreement provided by human resources, and the agreement must become effective before severance can be paid, according to the policy. It also lists circumstances in which severance is not payable, including an offer to transfer an employee to another company position with comparable pay and benefits.

In his letter, Watson said the decisions were unrelated to the affected employees’ performance or commitment.

“They have worked hard to make their locations successful, and the factors driving these decisions extend well beyond their control,” Watson wrote.

The broader restructuring includes sales location closures and changes in several markets, distribution center closures in Montgomery and Carrollton, Texas, and the company’s exit from the flooring business.

Watson said severance would be provided where applicable, with additional information about benefits, potential internal opportunities, outplacement services and transition support to follow as plans were finalized.