Alabama experienced a significant increase in mass layoffs and plant closures in 2024, affecting nearly 2,000 workers. While the reasons behind these layoffs are diverse, ranging from outdated operational models to contract breaches, the state's economic development officials have actively worked to mitigate the impact on affected employees. Auburn, in particular, saw a high concentration of layoffs but successfully facilitated the placement of most affected workers in new positions within a short timeframe.
Nearly 2,000 workers in Alabama faced layoffs and plant closures in 2024, according to WARN notices filed with the Alabama Department of Commerce. About 21 employers across diverse industries, from manufacturing to retail, reported mass layoffs, with roughly half also permanently shutting down their facilities last year.
This surge in layoffs can be attributed to a variety of factors, including outdated operational models, intense competition, and unforeseen events like breached contracts, explained Sam Addy, a senior research economist and associate dean for economic development outreach at the University of Alabama. Mass layoffs are defined as instances where companies employing at least 100 individuals dismiss 50 or more workers. Federal law mandates that such large employers provide a 60-day public WARN notice to the state before implementing mass layoffs or plant closures. These WARN notices are then disseminated by the Alabama Department of Commerce. This uptick in layoffs represents a significant increase compared to the recent past. In 2020, Alabama witnessed a peak of over 5,000 job cuts during mass layoffs. The following two years saw a dramatic decline, impacting approximately 800 jobs annually in 2021 and 2022. Last year's levels, however, approached those of 2019, which recorded roughly 1,800 layoffs, as indicated by WARN notices.Despite the increase in layoffs, 2024 saw broader economic improvements, driven by the Federal Reserve's gradual and incremental reduction of interest rates. Addy highlighted the significance of total employment figures when analyzing layoffs. He noted that as a percentage of total employment, mass layoffs were lower last year compared to the previous year. While the average number of unemployed individuals in the state last year was higher than in 2023, total employment surged. According to the Bureau of Labor Statistics, the average monthly total employment in Alabama last year was 2.27 million, up from 2.25 million in 2023. Auburn experienced the highest concentration of layoffs in 2024, with 267 employees reportedly losing their jobs across two mass layoffs. In August, Auburn University, in collaboration with its custodial service provider, Sodexo Inc. and Affiliates, laid off 170 employees. Subsequently, in an unrelated incident, another company in Auburn, laid off nearly 100 workers. Auburn's economic development department efficiently facilitated the placement of each affected employee in new positions within three months, and the site has since been acquired by a different company, according to city spokesperson David Dorton.
Economy MASS LAID-OFFS ALABAMA ECONOMY WARN NOTICES AUBURN EMPLOYMENT ECONOMIC DEVELOPMENT
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