Birmingham-Southern to lay off 213 employees without severance pay: ‘No funds are available’
More than 200 people are expected to lose their jobs without severance pay when Birmingham-Southern College closes in two months.
Many of the small private college’s employees are still searching for new jobs, said Virginia Gilbert Loftin, Birmingham-Southern’s vice president for advancement and communications.
She said 203 people will be laid off in two initial phases during the last week of May. Another group of 10 employees will be laid off in mid-June, followed by a smaller group that will stay on to help facilitate the closure.
“No funds are available for severance for any employees,” Gilbert Loftin said in a statement to AL.com.
While the number is ever-changing, 73 faculty members and 120 staff were still in search of work this week, she said. Others will retire or have already lined up new jobs.
On Friday, Birmingham-Southern filed its first public WARN notice with the state. Major employers are legally required to file the notices ahead of closures or mass layoffs. The institution said it informed all its employees in written notice of its planned closure on March 26.
AL.com has asked state and local workforce agencies whether they are supporting those looking for work. Spokespeople for Alabama Industrial Development Training and the city did not respond to requests for comment in time for publication.
Birmingham-Southern will host a jobs fair for faculty, staff and graduating senior students this Wednesday, Gilbert Loftin said. So far, 45 employers – including higher education institutions, nonprofits and public and private companies – have signed up to attend. The institution has also offered resume workshops and other assistance to people on the job hunt, she said.
When Birmingham-Southern’s board of trustees announced on March 26 that the school would close, the college employed 255 people — 112 faculty members and 143 staff, Gilbert Loftin said. That doesn’t include workers contracted through the college’s vendors.
Keith Thompson, chair of Birmingham-Southern’s board of trustees, announced the closure after the Alabama legislature failed to approve a $30 million loan to help the college stay afloat after years of financial issues. Thompson said the college would offer “as much help as possible” to employees.
“This is a tragic day for the College, our students, our employees, and our alumni, and an outcome so many have worked tirelessly to prevent,” Thompson said in the March 26 letter. “We understand the devastating impact this has on each of you, and we will now direct our efforts toward ensuring the smoothest possible transition for everyone involved.”
The institution’s staff headcount has dipped since fiscal year 2022, when Birmingham-Southern reported 292 employees, according to a report by M. Keivan Deravi of Economic Research Services Inc. Per that report, which Birmingham-Southern released last fall, the college spent nearly $21.7 million on salaries and wages, accounting for 41% of its total spending.
At the time, the institution touted the $97.2 million figure as its yearly contribution to Alabama’s economy. Since then, Birmingham-Southern launched a fundraising campaign and its public appeal to legislators for financial support to stay afloat.
Health insurance coverage will end on the last day of employees’ last month of employment, Gilbert Loftin said. But employees will be eligible to continue coverage under the federal COBRA program for a short period.
“Continuation of this coverage is only available if the College remains above 20 enrolled contracts on each individual plan for medical, dental and vision,” Gilbert Loftin said. “As operations wind down and the workforce levels decrease, COBRA may fully dissipate.”
Faculty members’ contracts still run through August, and they’ll be paid into July.
Meanwhile, the institution is also working to connect its students with other colleges and universities to finish their degrees. The college hosted a student transfer fair on Friday with representatives from nearly 70 higher education institutions, including 20 schools in Alabama.
The institution currently has pending or finalized teach-out agreements — which automatically admit students in good standing, award credits and comparable tuition, and waive application fees and residency requirements — with 17 institutions. That list includes in-state schools like Samford University, Jacksonville State University, Miles College, University of Montevallo, Stillman College and the University of Mobile, per the college’s website.
Birmingham-Southern also has transfer agreements with other institutions, which include some of the benefits of the teach-out agreements. But students still face other complications, such as finding housing and financial aid to complete their education.
The fate of the institution’s 192-acre campus in the otherwise residential Bush Hills community of west Birmingham is still unclear. Officials from the University of Alabama at Birmingham and Miles College previously told AL.com that they don’t have plans to take over the campus. Until there’s a buyer, security officers will monitor the property.