Layoffs shake wide range of workers in the Bay Area


The pace of planned layoffs in the Bay Area has slowed significantly so far in August compared to July – but job cuts continue to rock a wide range of industries amid new coronavirus-related closures, show official state deposits.Many Bay Area businesses have tried to hang on by using time off, but new business closures have forced a growing number of employers to switch from time off to full layoffs, in part because ‘they don’t know when – or how – they can reopen.

LSI-Silvercreek, which operates Leisure Sports, ClubSport and Sportsplex fitness and athletic centers in San Jose, said it was forced to lay off 140 workers, largely due to uncertainty created by the closures imposed by the government to combat the spread of the deadly virus.

“Leisure Sports has not been able to accurately assess the social and other distancing requirements that local county public health officials would place on Sportsplex and ClubSport, if and when they allowed the full reopening,” wrote the company in an official notice to the Department of Employment Development.

The company tried to keep operating and pay its employees. However, too many unanswered questions have come up against recreational sports and layoffs have been required.

“Without clear guidance from local county public health officials, the company has not been able to predict the type of services it would be able to provide,” Leisure Sports said in the report. ‘notice. “The company concluded that it could no longer maintain the status quo of maintaining payroll and maintaining employment for employees.”

PT Gaming, which provides third-party services in casinos such as “proposition betting,” which is a sort of side bet, said in an official statement that a recent ruling by Governor Gavin Newsom forced the company to fire 492 workers statewide, including 328 in the Bay Area.

“The governor’s order specifically required the immediate closure of all card rooms and does not indicate a safe return date or include an estimated time at which a return would be viable,” said Jeffrey Barney, executive director by PT Gaming.

Well-known Bay Area casinos were included in the PT Gaming shutdown. The layoffs hit 99 workers at San Jose’s Bay 101 casino, 124 at Artichoke Joe’s casino in San Bruno, 34 at California Grand Casino in Pacheco and 71 at Oak’s Card Club in Emeryville.

The Hudson Group, which operates more than 1,000 stores at airports, told EDD it was laying off 50 in San Jose. The company said it previously had high hopes of avoiding layoffs at its airports due to a rebound in air travel around May and June. But Hudson had to scuttle the plan.

“Initially, Hudson believed the pandemic was going to impact business for a limited period of time, and employees were temporarily put on leave to adjust to the downturn in activity at our airports due to the drop in air travel. , ”Roger Fordyce, CEO of Hudson said in the company’s notice.

However, in recent weeks, business closures have resumed across the country and in California, causing air travel to fall further.

Hudson decided to cut 50 jobs in San Jose, calling the layoffs permanent.

“The new spread of the virus and the resulting travel restrictions have led to a severe reduction in air travel and business at airports, and in particular, an increasingly dramatic and sustained reduction in airport activities in Hudson.” , Fordyce wrote to EDD.

SSP America, an airport catering service provider, has decided to lay off 120 workers at the San Francisco airport and 111 workers at the Oakland airport.

“The resurgence of the pandemic in several states in the United States, the resulting postponement of reopening plans and the recent imposition of new quarantines on travelers have led SSP America to now anticipate an increasingly significant impact on the ‘travel industry,’ said Lieske Renz, said a vice president of SSP.

The Province, an Asian fusion restaurant north of San Jose, told EDD it would launch temporary layoffs. The restaurant blamed the closure.

Among the other job cuts filed with EDD in early August:

– Marathon Petroleum said it was cutting 701 jobs at Martinez, including 674 at its refinery in Martinez and 27 at its chemical plant. The cuts will take place in October.

– Stanford University has proceeded with job cuts affecting 238 workers, effective September 1.

Still, the pace of layoffs is clearly slowing in the Bay Area, as measured by the average number of layoffs per day in the region.

An analysis by this news agency showed that the number of layoffs in the nine-county area so far in August was operating at a rate of 456 per day, down 25% from the July rate of 609 layoffs. ‘jobs per day.

“Only some form of reopening will reduce layoffs,” said Michael Bernick, lawyer at Duane Morris law firm and former director of EDD. “California’s continued economic lockdowns in counties continue to result in more layoffs, the conversion of holidays into layoffs, and business closures.”


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