Los Angeles County Layoffs 2017: Essendant Inc., Swissport SA, & Brier Oak on Sunset

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More Than 500 Job Losses in Los Angeles County

We’re only halfway through October, and California has already witnessed more than 1,000 job cuts. The California area that has announced the most jobs so far this month is Los Angeles County, with three companies there accounting for more than half of these layoffs.

Los Angeles County layoffs in 2017 have encompassed a wide spectrum of business closures. Swissport SA, Brier Oak on Sunset, LLC, and Essendant Inc (NASDAQ:ESND) are collectively cutting around 530 permanent jobs in October’s Los Angeles County layoffs.

Essendant Inc Layoffs: 123 Job Cuts in Whittier

Deerfield, Illinois-based office equipment manufacturer Essendent Inc is the latest company to announce layoffs in Los Angeles County. The company has announced a plant closing in Whittier, which will result in all 123 employees at the facility losing their jobs on December 15.

The announcement of the plant closure and associated layoffs comes just days ahead of the company’s third-quarter earnings release. Essendent has been facing declining sales, reporting a drop of 6.9% in net sales in the most recently reported quarter, which ended June 30.

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Essendant, which started off as an office supplies company and continues to be one of the leading distributors of office equipment in the United States, has also ventured into industrial and automotive manufacturing.

The company undertook a restructuring initiative in 2015 amid mounting sales pressure and rising costs. Since then, the company has intermittently laid off staff and has consolidated its production and distribution facilities across the country in order to control costs. The latest plant closure in Whittier is seemingly a continuation of the same.

As of January 2017, the company employed about 6,600 workers and had a network of more than 70 distribution centers across the country.

Brier Oak on Sunset Layoffs: 128 Job Cuts in Los Angeles

The Brier Oak on Sunset layoffs amounted to the same number of job cuts as the Essendant layoffs. The for-profit nursing home, which provides Medicaid and Medicare services in Los Angeles, announced earlier in the month that it is cutting about 128 of its nursing staff. The layoffs will take effect on December 1.

The Brier Oak on Sunset layoffs were announced about a month after the U.S. Department of Health and Human Services terminated its services agreement with the company. After that, the nursing home lost insurance reimbursements from the federal government’s Medicare program. This loss of revenue has consequently put pressure on the nursing home to cut costs by reducing staff.

A significant number of Los Angeles County layoffs this year have been in the healthcare sector. Molina Healthcare, in particular, has been at the forefront of healthcare sector layoffs in Los Angeles County in 2017.

Swissport SA Layoffs: 280 Job Cuts in Los Angeles

The biggest Los Angeles County layoffs in October were the Swissport SA layoffs. The aviation services company announced about 280 job cuts in Los Angeles this month. These layoffs will be taking place by December 3.

The aviation services giant, which provides ground, cargo, and passenger handling services at about 217 airports across the world, has recently been in the news for having broken promises with its employees. The layoffs come at a critical time, when the company’s unionized North American employees have been protesting lower-than-expected annual increments in wages and related employee benefits.


Sources

WARN Report,” State of California Employment Development Department, Last accessed October 16, 2017.

Essendant Reports Second Quarter 2017 Results,” Essendant Inc., July 26, 2017.

Termination Notice,” Centre for Medicare and Medicaid Services, Last accessed October 16, 2017.

Airport Strike Over at Pearson Airport,” Equities, October 15, 2017.

Swissport cleaners and ramp agents at IAH vote to join a union,” Chron, August 4, 2017.

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