Texas workers got layoff notices in late October and asked: Why now? Nearly 1,300 people lost jobs in two weeks—the biggest wave in years. Factories and banks filed termination papers.
Most jobs end December 26 to January 3, forcing families to manage unemployment during the holidays instead of celebrating. Texas’s strong economy is changing, and workers notice it first.
Milestone Reversed
This shift became clear in August 2025. For the first time in years, Texas’s unemployment hit 4.7 percent—higher than the national rate of 4.5 percent.
San Antonio’s rate jumped from 3.9 to 4.4 percent in one month. Over 747,000 Texans filed unemployment claims from January to October, representing a 7 percent increase from the same period in 2023.
Texas has consistently outperformed other states in surviving economic crashes. That’s changing now, signaling a turning point for the state’s workforce.
Manufacturing’s Long Decline
This economic turning point is most visible in the manufacturing sector. Texas manufacturing mirrors national job losses. The U.S. lost 78,000 factory jobs in the year ending August 2025.
Manufacturing now makes up just 8 percent of U.S. jobs, down from 22 percent in 1979. Texas also lost 7,000 factory jobs. New jobs came in hotels, construction, and healthcare instead.
Middle-class factory work—backbone jobs for workers without degrees—is disappearing.
Pressure Points
The reasons for these losses are complex and interconnected. High interest rates slowed spending and hurt manufacturers. Factory employment hit its lowest level since July 2020 in August.
Tight immigration rules reduced the workforce, while tariffs raised costs for manufacturers who import one-third of their materials.
The Dallas Fed found 18 percent of Texas factories cut workers in October 2025. Production outlook dropped from 31.6 to 21.0. Economic problems hit all at once.
The Coordinated Exit
These economic pressures led to direct consequences for workers. Nearly 24 companies filed layoff notices with the Texas Workforce Commission between late October and early November 2025, affecting 1,331 workers. Flagstone Foods closed its 225-worker El Paso plant.
Eden Green shut down both Cleburne greenhouses, resulting in the loss of 102 jobs. Tekni-Plex halted most Dallas operations, resulting in the loss of 64 jobs. Pure Hothouse closed its San Antonio location, eliminating 80 positions.
Natura PCR suspended its $150 million Waller plant, resulting in the loss of 88 jobs. Multiple factories closed at once.
Border to Panhandle
The impact of these closures was felt throughout the state. El Paso lost 225 jobs when Flagstone Foods closed. Dallas-Fort Worth lost Eden Green’s 102 jobs and Tekni-Plex’s 64 jobs.
San Antonio lost 80 Pure Hothouse jobs. Waller County lost 88 Natura PCR jobs at a 150-acre site. Every major Texas city lost factory jobs. From the border to the Panhandle, no region escaped.
Manufacturing job losses are widespread, with an impact felt throughout the state.
December Terminations
For many workers, the timing of these layoffs added further stress. Most workers lose jobs the last week of December or the first week of January. Flagstone workers finish on December 19.
Tekni-Plex and Wells Fargo’s 225 Lubbock workers finish on December 26—the day after Christmas. Eden Green ends December 13. Pure Hothouse ends December 31.
Workers rush to understand unemployment and whether they can afford to pay their January rent.
Wells Fargo wrote that layoffs are “never easy” and offered severance. For families, the holiday timing can feel especially challenging.
Banking Joins Manufacturing
Banks also cut jobs. Wells Fargo cut 225 Lubbock positions by December 26, shrinking from 276,000 workers in 2020 to 211,000 by September 2025—a 24 percent drop.
Colonial Savings, founded in 1952, is closing its mortgage division and will cut 130 Fort Worth jobs by July 2026.
Together, they eliminated 355 financial jobs. High interest rates, slow mortgages, and automation made smaller cities too expensive to operate.
Growth Sectors Elsewhere
While factories and banks cut jobs, Texas added lower-paying jobs. Hotels added 10,900 jobs in August. Education and health added 5,200.
Construction added 1,100. But hotel work is often part-time. Construction work changes with the housing market.
Education needs specific degrees. Restaurants have 82,000 openings statewide.
Middle-class factory jobs with benefits are being replaced by service jobs with lower pay and less security.
The Reversal Nobody Saw
Eden Green’s collapse shows how fast things changed. In October 2023, the farm company initiated a $40 million expansion project to construct 20 greenhouses nationwide, creating 100 new jobs.
They supplied 400 Walmarts. By October 2025—less than two years later—they fired all 102 workers. Natura PCR opened a $150 million recycling plant in late 2024.
By October 2025, they suspended operations and cut 88 jobs. Both collapsed within months.
Franchise Frustration
As layoffs began, workers faced unexpected uncertainty. Workers were shocked. One person on Reddit wrote about his girlfriend at Wells Fargo Lubbock: “She was let go today.”
A Colonial Savings worker said, “Today would’ve been my 8th anniversary. But they’re closing after 70 years.” Another said hours were cut three months before layoffs.
Job1USA cut 130 workers at six Texas sites with two weeks’ notice. Every industry: little warning, business reasons, workers scrambling before holidays.
Ownership Shifts
Company changes came before closures. Flagstone bought Emerald Nuts in May 2023, then closed the El Paso plant 18 months later, cutting 225 jobs.
Congo Brands cut 155 Lewisville workers after a $1.65 billion buyout.
Wells Fargo’s CEO has cut 65,000 jobs since 2020—approximately 24 percent of the staff—by closing smaller offices.
Ownership changes and business shifts often occurred just before mass layoffs affected workers.
No Recovery Plans
These closures are permanent, not temporary. Flagstone said the El Paso plant won’t reopen. Eden Green’s greenhouses are closing forever. Tekni-Plex is stopping Dallas operations permanently.
Pure Hothouse called it a “permanent shutdown.” Natura PCR’s layoffs are “considered permanent” despite calling the closure temporary.
Wells Fargo’s Lubbock jobs are gone with no transfers. Colonial is ending an entire division. No company plans to rehire or reopen its operations. The jobs are gone.
Expert Skepticism
Economic forecasters expect more decline. The Dallas Fed cut its Texas jobs forecast from 2.0 percent to 1.3 percent growth. “Employment growth seems to be softening,” said Luis Torres, Dallas Fed economist.
Future business expectations fell to 7.0 from earlier highs. Texas A&M stated that manufacturing “deteriorated” due to the decline in oil prices.
Economists say that even if tariffs stabilize, factory jobs won’t return because tariffs increase costs, and automation will replace workers.
What Comes Next?
If 1,300 workers lost jobs in two weeks, what happens with the next wave? Texas unemployment claims have risen every year since 2022.
The 7 percent increase through October 2025 shows it’s getting worse. December layoffs are expected to result in a surge of workers flooding unemployment offices in January, adding to the 747,000 existing claims. Factory job losses aren’t temporary—they’re permanent.
Can hotel, construction, and healthcare jobs replace middle-class factory wages? Can Texas stay a jobs haven?