Businesses detail layoffs affecting 2,300+ employees
INDIANAPOLIS (Inside INdiana Business) — As businesses continue to deal with the effects of the COVID-19 pandemic, the Indiana Department of Workforce Development is reporting more mass layoffs. In separate notices to the state, six companies have announced temporary or permanent layoffs, affecting more than 2,300 workers.
Master Guard, a division of Michigan-based Flex-N-Gate Corp. has temporarily laid off 680 employees at its facility in the Fountain County town of Veedersburg. The automotive parts supplier says it is unsure how long the layoff will last.
The Tropicana Evansville casino says it will temporarily furlough 529 employees beginning Saturday. The move is the result of the Indiana Gaming Commission requiring all casinos to close as a result of the pandemic.
Georgia-based Hooters of America LLC says it is conducting partial restaurant closures and workforce reductions at 11 locations throughout Indiana. The restaurant chain did not specify whether the layoffs, which affect 502 employees, would be temporary or permanent.
The company says it is also conducting layoffs at its Atlanta headquarters.
Another automotive parts manufacturer, Michigan-based ZF Active Safety & Electronics US LLC, is also detailing staff reductions. The company says it has temporarily laid off 249 employees at its Lafayette facility, with current plans to resume production on April 13.
Georgia-based Ashbury Automotive Group is conducting temporary furloughs at seven Bill Estes and Hare car dealerships in central Indiana. The move will affect a total of 215 employees, though the company did not provide an estimated return date.
“As you know, the COVID-19 virus recently reached pandemic proportions and the federal government and many states have declared a state of emergency,” Ashbury said in its notice to the state. “These sudden and
unexpected circumstances adversely affected our business operations and, unfortunately, prevented us from providing notice sooner.”
Meanwhile, two other companies have announced layoffs not related to COVID-19.
Tennessee-based Manchester Tank and Equipment Co. says it will permanently close its Bedford facility on June 30, affecting 117 employees. The company did not provide a reason for the closure, but said all employee separations are expected to be complete by September 30.
Additionally, France-based Sodexo says it will cease operations at Westfield Washington Schools in June, leaving 68 employees out of work. In its notice to the state, Sodexo cited the district’s decision to discontinue its janitorial services.
According to Sodexo, a letter from Westfield Washington Schools on March 30 indicated it would no longer use Sodexo to perform its custodial, maintenance and grounds services. Southeastern Service Co. in Tennessee will provide its custodial services, while the district’s maintenance and grounds services will move in-house.
Sodexo expects the layoffs to be permanent and does not plan to resume operations at the facility. It is not known if the new operator will hire any of the employees being laid off.