Layoffs at New Era Derby Plant

September 6, 2013 Updated Sep 6, 2013 at 11:38 PM EDT

By Kendra Eaglin

September 6, 2013 Updated Sep 6, 2013 at 11:38 PM EDT

Derby, NY

When Duane Ibach showed up for work at the New Era cap factory in Derby Friday he quickly realized his day would be anything but routine.

"I walked in and next thing you know they told us to go to the cafeteria and we sat down. After 10 minutes they explained that we're going to get laid off," said Ibach.

Employees were given a letter detailing the process of the layoffs which will take effect as early as the end of October and impact about 75 employees.

According to the layoff letter New Era is offering affected employees a severance package that goes beyond what they are contractually obligated to offer. It includes up to 10 weeks of severance pay and health care coverage for up to one year.

It's hard to believe things got to this point especially with the recent news the company inked an eight year deal with the New York Yankees worth $20 million on top of New Era's marketing campaigns at the superbowl, Sundance Film Festival and the Grammy's..

However, executives say the former workload at the Derby plant is not expected to return.