The company name is Saudi airlines and the plant is closing located in Dammam city
You receive word from your chief operating officer that your company is planning to shut down one of its field operations on January 1.
The plant is located in a smaller city, and it is the primary employer for that region. More than 450 people will lose their jobs as a result of this closing. The company will maintain a small operations office after the plant is closed. Only about 30 people will be retained for this operation. The remaining employees will be terminated with two weeks severance pay. An attempt to locate other work for them will be made through contacts with other companies in the industry. However, your human resources department is not optimistic for them.
Closing the plant will enable the company to consolidate its manufacturing operations and will save the company more than 15 percent of its operations budget. The plant in question was one of the company’s most inefficient, but has had a good performance record.
The property will be deactivated, and a buyer or lessor for it will be sought.
The reason the plant is being closed is NOT due to a downturn in the economy. Rather, there is falling interest in your company from the Wall Street investment community. They don’t have confidence that your company has the courage to contain costs. Operation of the plant hasn’t been that bad in recent times, but the chairman has decided that a sacrificial act must be taken to shore up investor confidence. These facts and the real reasons are not to be disclosed.
Just a year ago, local community leaders were invited to a company/community appreciation day at the plant to celebrate a record breaking performance year. They may feel blindsided by this announcement.
Now it’s your turn:
Fill in any pertinent facts needed to flesh out the details of the scenario as it applies to your particular company.
Write two news releases announcing the plant closure using the format described and illustrated in Chapter 6 of your textbook (See Exhibit 6.1 on page 92):
One is to be for national and regional use and will be released from the company’s headquarters.
One is for the local news media in the community that is losing the plant.
Your CEO says these releases should be short and cover only the necessary facts. But as PR professional, you know to include at least one quote from an appropriate leader, along with answers to the key questions the media will no doubt ask.