Winnebago Industries will terminate 196 positions at four northern Iowa facilities on June 13.
The layoffs will specifically affect workers at plants located in Forest City, Lake Mills, Charles City, and Waverly. According to Iowa’s Worker Adjustment and Retraining Notification (WARN) website, Forest City will see the most substantial reduction, with 128 workers being let go.
Smaller layoffs will also take place at Lake Mills with 30 workers, Charles City with 20 workers, and Waverly with 18 workers affected.
It is the manufacturer’s third workforce reduction in less than a year. Earlier rounds in July 2024 and October 2024 affected 33 and 36 employees, respectively.
The July 2024 layoffs occurred due to the closure of a Winnebago facility in Charles City, while October’s reduction was attributed to reduced market demand and inventory adjustments.
Winnebago, in its statement to the Des Moines Register, cited “cyclical shifts in the RV industry, including decreased customer demand, elevated inventory levels, and other business considerations” for its latest decision.
The company said it is “assisting affected team members during this period of transition” while remaining “committed to the success of our flagship Winnebago brand and [continues] to be invested in the Iowa community.”
Additionally, the company has decided to pause production on its largest Class A motorhomes, responding to challenging market conditions and excessive inventory, as reported by Northiowanow.com.
Indiana Reductions at THOR Units
Concurrently, THOR Industries recently reported over 550 layoffs scheduled in Indiana, attributing workforce reductions to declining market conditions and elevated inventories.
Employees at subsidiaries—Cruiser RV, DRV, and Heartland Recreational Vehicles—are slated to be laid off in June, according to notices filed with the Indiana Department of Workforce Development.
Winnebago employs about 2,000 workers in Iowa and more than 6,100 company-wide. Overall, the RV industry employs almost 60,000 workers.
Industry demand spiked during the pandemic but has since moderated, leading manufacturers to pare production to match dealer inventories.
Recession Indicator?
With news of mass layoffs across major RV manufacturers, some fear that a downturn in the RV sector could signal broader economic challenges.
As noted in a recent article by The Autopian published on MSN, economists have long considered the RV industry a potential recession indicator, as declines in RV sales and production often reflect weakening consumer confidence and reduced discretionary spending.
Yet, RV industry leaders remain optimistic about the long-term trajectory of the sector, an article by The Elkhart Truth published on Yahoo Finance shows.
Speaking at the May 8 RV Industry Power Breakfast in Elkhart, Indiana, RV Dealers Association Chairman Larry Trout III said that “despite the current challenges, long-term optimism is growing,” and that “dealers are telling us loud and clear they believe in the road ahead.”
Other speakers pointed to indicators of growth, including a nearly 14% increase in wholesale shipments during the first quarter and 11 million new camping households in 2024.
Mayor Rod Roberson and industry executives emphasized the sector’s resilience, with nearly 1,300 attendees present at the event, which was viewed as a reflection of ongoing confidence.
Jessica Wahl Turner of the Outdoor Recreation Roundtable noted the outdoor recreation economy’s $1.2 trillion value and contribution of 2.3 percent to the U.S. GDP—figures that exceed sectors such as utilities and mining.
Industry representatives also emphasized the role of RVing in supporting family-centered travel and its continued relevance in American lifestyles.