Peoria’s NFW recently laid off employees as part of company restructuring — the third restructuring of this kind at the producer of plant-based plastic alternatives in as many years.
A spokesperson for the company formerly known as Natural Fiber Welding on Friday confirmed to WCBU the workforce reduction, but did not disclose the number of employees impacted.
Communication from the company indicated the reduction was in an effort to “streamline operations and concentrate on delivering core chemistries into the global supply chain.”
It also is unclear which NFW facilities were impacted by the layoffs. NFW has buildings on Water Street and Jefferson Street, with a main headquarters on Galena Road.
“This decision was not made lightly. It affects many talented team members whose work has helped bring our missions to life,” wrote the spokesperson with NFW’s communication office. “We are grateful for their contributions and are committed to supporting everyone impacted through this transition.”
The company laid off a portion of its workforce in a similar restructuring process late last year. At the time, the Peoria Journal Star reported 91 people were let go, citing internal company documents. There were reportedly around 100 employees still at the company after this last round of restructuring.
The company furloughed employees a month before the 2024 layoffs, and also saw a round of layoffs in 2023.
In a statement, NFW CEO Steve Zika said the change represents a new chapter for the business.
“By focusing on what we do best-creating nature-based chemistries- we can accelerate our work with partners across the supply chain who need the technical solutions only we can offer,” Zika said. “While our mission remains unchanged, we are evolving our model to operate more squarely as an intermediates business- embedding our IP directly into the supply chains of leading brands and manufacturers rather than producing materials ourselves. This allows us to scale faster, reduce resource intensity and make sustainable technologies more widely available across industries like fashion, footwear, automotive and home goods.”
It’s unclear what effect, if any, this shift in model will have on the four material product lines created by the company and their partnerships with brands like Ralph Lauren and BMW.
The news comes less than a year into Zika’s tenure as CEO; he replaced founder and Bradley University professor Dr. Luke Haverhals in November 2024. It also closely follows what the company calls a “successful funding round” with existing shareholders in a press release from late last year.
NFW was founded in Peoria in 2015. The business is frequently used as an example of innovation by City of Peoria leadership and is considered a key anchor business for the Galena Road Industrial Park TIF along Illinois Route 29.
