Loss of Big Contract to Result in Job Cuts at Aramark
Food and uniform services company Aramark has announced that it is laying off up to 175 workers after losing a contract with a major client in Houston, Texas. Houston First Corporation, which manages more than 10 city-owned buildings, decided to end its contract with the caterer.
Houston First had hired the Philadelphia-based Aramark to deliver catering services at events held at its venues. Some of the properties that Houston First manages are George R. Brown Convention Center, Jones Hall for the Performing Arts, Wortham Theater Center, Talento Bilingue de Houston, Miller Outdoor Theatre, and Houston First Outdoors.
An Aramark spokesperson, David Freireich, confirmed the termination of the contract, saying, “Our contract to provide catering services at George R. Brown Convention Center and the Theatre District will conclude on Sept. 30.”
In the layoff notice filed with the Texas Workforce Commission under the Worker Adjustment and Retraining Notification Act (WARN Act), Aramark said that the job cuts also include some positions at the Miller Outdoor Theatre and Wortham Theater Center. In addition, two employees have already been laid off at Jones Hall on July 30.
This is Aramark’s second significant loss of a contract within a month. In July, the company filed a WARN notice with the Illinois state department, informing them of 117 layoffs after losing a contract with Waukegan School District.
Aramark is a publicly traded company that has grown from a small family-owned vending company in the 1930s into a large corporation decades later. The company provides food, facilities services, and uniforms to public and private sector organizations.
Aramark’s clients come from a number of sectors, including healthcare, education, sports, and business. The company has operations spanning 19 countries across the globe.
Aramark employs a global workforce of roughly 270,000 employees, and is one of the largest employers in the Fortune 500 list.
“Aramark announces layoffs after losing key contract,” Chron, August 7, 2017.
“Nearly 1,500 mass layoffs in Illinois in July, dominated by manufacturing,” Chicago Tribune, August 4, 2017.
“About Us,” Aramark, last accessed August 8, 2017.