Shelby County layoff notices in 2024: 3 employers plan to cut 378 jobs in Memphis
There's still more than a month left in the first quarter of 2024, but layoff notices already have been filed for almost 400 jobs in Memphis.
Since Jan. 1, Shelby County has seen three Worker Adjustment and Retraining Notification Act (WARN) notices filed, impacting a total of 378 jobs across three companies. (There have been 10 notices filed within the state this year as of Feb. 19.)
In comparison, 2023 saw seven WARN filings in Shelby County, impacting more than 640 jobs. In February 2023, American Car Center's closure accounted for almost half those jobs. The American Snuff Co.'s announcement (also in February 2023) regarding the permanent closure of its 5106 Tradeport Drive plant was the second-largest of those filings, with 132 employees affected.
A WARN filing complies with federal and state law. Tennessee employers are required, by law, to notify the Tennessee Department of Labor and Workforce Development when 50 to 99 employees are impacted due to workforce reductions, facility/business closures or scheduled layoffs.
Under state law, employers are required to send written notice to the Dislocated Worker Unit of the Tennessee Department of Labor and Workforce. The notice is to help assist and provide resources for employers and employees with the region's rapid response team. The Greater Memphis Local Workforce Development Area's rapid response team is overseen by the Greater Memphis Chamber.
"The Greater Memphis Chamber is proactively addressing the needs of dislocated workers and actively working on a robust pipeline of current and potential projects that could provide employment opportunities," the Chamber said in a statement to The Commercial Appeal. "WARN notices are a natural part of the ebb and flow of a workforce ecosystem in a resilient economy. By connecting individuals to quality jobs and training programs, the Chamber plays a vital role in helping workers adjust to the changing employment environment."
Officials from companies that have announced layoffs this year did not respond to requests for comment.
GXO Logistics
On Jan. 9, GXO Logistics Supply Chain Inc. filed a WARN notice with the state. The layoff notice impacts 211 staff at the company's 4795 Imagination Drive facility.
According to the notice, the permanent layoffs will begin March 6 and will run through April 27.
The Imagination Drive facility is 647,900 square feet and listed for sublease via CBRE. The 46.39-acre site is listed as the "Disney Distribution Center" on the CBRE website.
On Feb. 13, GXO released its 2023 fourth quarter earnings report, netting $2.6 billion in revenue during the final fiscal quarter of 2023. The company earned $9.8 billion in revenue over the entire calendar year, according to the report.
“We’re uniquely positioned to help our customers make their supply chain operations more productive today and more resilient tomorrow," GXO CEO Malcom Wilson said in the report. "Our 2024 guidance reflects another year of solid revenue growth as well as continued strength in profit and cash flow, and we are very excited about our long-term growth trajectory."
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Marsden Services
The custodian services company filed a WARN notice with state officials on Jan. 24. The permanent layoff notice affects 105 employees at 4055 New Allen Road. The New New Allen Road facility is an Amazon fulfillment warehouse and client of Marsden Services. Layoffs were set to begin Feb. 20 or within 14 days.
"Marsden Services L.L.C. anticipates most employees will be offered the same or similar positions with the incoming janitorial contractor," the notice said.
Marsden Services was founded in 1952 and operates 159 offices nationwide with more than 10,000 employees, according to its website.
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Sunoco Products Co.
Sunoco Products Co. will be laying off 62 workers due to a permanent closure at the company's 1440 Ragan St. facility, according to a WARN filing.
The company filed the layoff notice with state officials on Jan. 30. Sunoco Products was set to start the layoffs in a series of phases beginning Feb. 1 and continuing through Jan. 31, 2025, according to the notice filed.
In January, the South Carolina-based product and service company announced it would divest in its protective solutions packaging business and sell the business to Black Diamond Capital Management for an estimated $80 million in cash.
Sunoco is still operating its Bartlett facility at 2820 Summer Oaks Drive. The product and service company has operated within the Memphis region for decades. In December 2001, the company permanently closed its Premiere Avenue facility in Memphis.
Neil Strebig is a journalist with The Commercial Appeal. He can be reached at neil.strebig@commercialappeal.com, 901-426-0679 or via X: @neilStrebig.
This article originally appeared on Memphis Commercial Appeal: Layoffs in Memphis: GXO Logistics, Marsden Services, Sunoco Products
