Chattanooga, September 14, 2025
News Summary
Chattanooga is currently experiencing a wave of layoffs affecting various sectors, including manufacturing and health care. Major employers like Wacker Chemical Corp., BlueCross BlueShield, and Volkswagen are cutting jobs due to increased operational costs and declining market demand. These decisions, driven by an uncertain economic landscape, could significantly impact the local community and employees, many of whom are facing an uncertain future. Local leaders have expressed concern over the potential long-term effects of these job reductions.
Chattanooga is grappling with a wave of significant layoffs as major employers respond to ongoing economic pressures and rising operational costs. The recent announcements include layoffs across various sectors, including manufacturing and health care, which could have lasting impacts on the local community.
Wacker Chemical Corp., a polysilicon manufacturer based in Bradley County, has initiated layoffs affecting 90 employees at its plant. This move will take effect in July and is part of a broader reassessment of workforce needs amid changing economic conditions.
Similarly, Astec, a Hamilton County manufacturer known for producing asphalt equipment, has also announced plans to cut its workforce, though the specific number of jobs affected has not been disclosed.
BlueCross BlueShield of Tennessee, the state’s largest health insurance provider, revealed its plans to eliminate 95 jobs and cut 28 vacant positions due to soaring healthcare costs. The company noted a significant increase in claims costs beginning in the latter half of 2024, prompting these difficult decisions. BlueCross has assured employees that they will receive several weeks’ notice before the layoffs take effect, as well as “generous” severance packages and employment assistance for those impacted. The company employs around 6,700 people, with approximately 4,200 working from its Chattanooga location. This latest round of layoffs follows the reduction of 150 positions earlier this year due to restructuring within its Shared Health subsidiary.
Volkswagen’s Chattanooga assembly plant has adjusted its operations in response to market conditions by shifting to a two-shift production model, launching a voluntary attrition program. The shift is driven by a cautious demand for electric vehicles (EVs), highlighted by a staggering 93.9% decline in sales of its ID.4 model, which saw only 646 units sold recently. This adjustment has sparked frustration among employees, who express concerns about potential job losses and the influence of the United Auto Workers (UAW) union on negotiations.
The Tennessee Valley Authority (TVA) reported that 600 employees have taken voluntary buyouts as part of a wider initiative to cut operational costs. Additionally, Miller Industries announced 150 layoffs across its facilities in August, further contributing to the trends of workforce reductions among Chattanooga’s large employers.
The surge in layoffs reflects a challenging economic environment in the region, where employers are struggling with declining market demand and rising costs of operations. Local leaders, including Hamilton County Mayor Weston Wamp, have expressed concerns about the UAW’s role in these job losses and the negative effects on community well-being.
As these layoffs unfold, many employees are left to confront uncertainty regarding their future employment and the stability of their respective industries. The impact of these layoffs is yet to be fully realized, but indications suggest that the challenges facing Chattanooga’s workforce are likely to persist.
Key Statistics
| Company | Number of Layoffs | Location | Sector |
|---|---|---|---|
| Wacker Chemical Corp. | 90 | Bradley County | Manufacturing |
| Astec | Undisclosed | Hamilton County | Manufacturing |
| BlueCross BlueShield | 95 + 28 vacant positions | Chattanooga | Health Insurance |
| Volkswagen | Voluntary attrition program | Chattanooga | Manufacturing |
| TVA | 600 | Tennessee | Utilities |
| Miller Industries | 150 | Multiple Locations | Manufacturing |
FAQ
What is causing the layoffs in Chattanooga?
Major employers in Chattanooga are facing economic pressures, rising operational costs, and significant declines in market demand, leading them to reduce their workforces.
Which companies have announced layoffs recently?
Companies such as Wacker Chemical Corp., Astec, BlueCross BlueShield, Volkswagen, TVA, and Miller Industries have all announced layoffs in recent months.
How many employees are affected by the layoffs?
Around 90 employees are being laid off at Wacker Chemical, 95 positions are being cut at BlueCross, and additional undisclosed numbers at Astec and Volkswagen, among others.
What type of assistance will laid-off employees receive?
Affected employees from BlueCross will receive severance packages and job search assistance. Other companies may offer similar programs, but details vary.
What is the overall trend in Chattanooga’s workforce?
The recent layoffs represent a broader trend of job reductions among Chattanooga’s largest employers as they navigate challenging economic conditions.
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Additional Resources
- Tennessean: BlueCross BlueShield Layoffs
- Local 3 News: BlueCross BlueShield Layoffs Update
- Times Free Press: BlueCross BlueShield to Lay Off 95
- NewsChannel 9: Layoffs Looming for Federal Workers
- Wikipedia: Layoffs
Author: STAFF HERE CHATTANOOGA WRITER
The CHATTANOOGA STAFF WRITER represents the experienced team at HEREChattanooga.com, your go-to source for actionable local news and information in Chattanooga, Hamilton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Riverbend Festival, Chattanooga Oktoberfest, and Moon River Festival. Our coverage extends to key organizations like the Chattanooga Area Chamber of Commerce and United Way of Greater Chattanooga, plus leading businesses in manufacturing, insurance, and utilities that power the local economy such as Volkswagen Chattanooga, BlueCross BlueShield of Tennessee, and EPB. As part of the broader HERE network, including HEREBristol.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
