PCM Lays Off 50 Employees After Recent Expansion in Rio Rancho
A direct marketing company that sells IT solutions to public and private sector businesses, PCM, Inc., has announced that it is laying off 50 employees at its facility in Rio Rancho, New Mexico. The affected employees were working in PCM’s commercial operations unit, which sells products and solutions to private-sector businesses.
The employees who were laid off are still eligible to be rehired for other positions later.
The El Segundo, California-based company had entered Rio Rancho last year in order to expand its operations into one of the biggest business hubs in New Mexico. The company sells technology hardware, software, and cloud services from a number of famous brands and vendors to businesses, government institutions, and individuals.
PCM received financial incentives from the State of New Mexico to expand into Rio Rancho and create employment for the locals. Initially, PCM received $700,000 from New Mexico’s Local Economic Development Act fund, and an additional $568,676 from the state’s Job Training Incentive Program funds. Over the past year, the company has managed to rake in about $1.6 million in job training funding from the government.
PCM had promised to create 75 jobs in the first year of its expansion into Rio Rancho after receiving the government funding. The company then went on a hiring spree at its Rio Rancho location, taking on more than 200 employees in just the first year of being there. However, within a year of its expansion into the city, 25% of that workforce has already been laid off.
According to Charles Walters, a senior manager in human resources at the Rio Rancho location, the decision to cut jobs had been made “in line with managing the productivity of our sales force in Rio Rancho.” Walters also said that the company is still ahead of its original hiring schedule in the city.
PCM still aims to follow its original plan to eventually increase the headcount of its Rio Rancho workforce to 224.
Despite the job cuts in its commercial sales unit, the company says that it is continuing to hire employees for its public sector sales support department, to target public sector clients including hospitals and other government agencies. The company will add about 15 positions to this segment.
“Rio Rancho facility lays off workers a year after opening,” Albuquerque Business First, August 2, 2017.
“IT firm new to Rio Rancho lays off 50,” Albuquerque Journal, August 2, 2017.