Sony DADC is cutting about 100 workers at a western Indiana plant that began producing compact discs in the 1980s and will move all of the plant’s game and disc manufacturing to Austria.
The downsizing will likely take place in March and drive manufacturing will end at the Terre Haute plant in mid-2022, said Lisa Gephardt, senior director of corporate communications for Sony Corp. of America.
She said the affected workers will not be offered other positions as the plant is Sony’s last record production plant in the United States, but they will receive severance pay, the Tribune-Star reported.
The company plans to retain about 150 workers at the Terre Haute plant, which will become an assembly and distribution plant for Sony, Gephardt said.
The plant’s disc manufacturing capacity will be transferred to Sony’s DADC manufacturing center in Salzburg, Austria. Gephardt attributed the changes to the “continued shift to digital in the home entertainment market”.
The Terre Haute plant was the first compact disc manufacturer in the United States, beginning production in September 1984 with Bruce Springsteen’s “Born in the USA” album, according to the Tribune-Star.
Fewer than 300 Sony employees remain in Terre Haute. The company halved the factory workforce in 2018 with the permanent layoff of 375 factory workers. This reduction was made after Sony outsourced its music and video manufacturing.