Over 500 Employees Being Laid Off by Corecivic Inc
An operator of private prisons, Corecivic Inc (NYSE: CXW), has announced that the company will be laying off more than 500 workers after having lost a contract with the Texas Department of Criminal Justice.
In a document filed with the Texas Workers Commission under the Worker Adjustment and Retraining Notification Act (WARN Act), the company revealed its plans to lay off 518 employees in Jack County, Willacy County, and Rusk County.
The WARN Act requires companies to inform affected employees at least 60 days prior to mass layoffs. It is unclear what kinds of positions are being affected by the layoffs, which will be taking place in August.
The layoffs will affect employees at three facilities across three counties. In Jack County (in North Texas), about 169 workers will be handed pink slips. In Willacy County (in the Lower Rio Grande Valley), about 157 employees will lose their jobs. Rusk County (in East Texas) will see the most layoffs; 192 workers will be sent home after the prison operator cuts jobs.
It has not yet been confirmed why the Texas Department of Criminal Justice is not renewing its contract with Corecivic. The loss of the contract may have to do with lawsuits against the company.
The prison operator came under fire after scabies broke out at prisons under its control. A class action lawsuit has been filed against Corecivic, citing deliberate negligence on the part of the management in failing to protect inmates against the skin infection.
Corecivic has also been criticized for bad conditions at its detention center in Dilley, Texas. The detention facility houses undocumented immigrants, specifically women and children. Corecivic has faced numerous protests against the management of the facility, which is likened to a jail for its under-maintenance.
The contract that Corecivic had with the Texas Department of Criminal Justice allowed it to receive funding for running its prisons and detention centers. In the absence of state funding, the agency has to downsize its workforce.
“Private Prisons Operator CoreCivic Laying Off 500-Plus Workers Across Texas,” Downtown Austin Patch, July 11, 2017.