Mass layoffs in Alabama remained above pre-pandemic levels in 2024
Alabama saw fewer mass layoffs last year than in 2023, yet the number of job losses for large employers still remained above pre-pandemic levels.
Nearly 2,000 workers in Alabama were laid off in mass layoffs and plant closures in 2024, according to WARN notices filed with the Alabama Department of Commerce. About 21 employers in industries ranging from manufacturing to retail reported mass layoffs, with about half of them also permanently closing their facilities last year.
Mass layoffs can happen for a variety of reasons, depending on factors like the size of the firm or what’s going on in a particular industry, said Sam Addy, a senior research economist and the associate dean for economic development outreach at the University of Alabama.
“If that firm was running on operations that were outdated, it’s being outcompeted, you definitely would have mass layoffs,” Addy said. “This could be either planned, or involuntary, or when they get a shock like contracts that are breached.”
Mass layoffs are classified as those in which a company that employs at least 100 people lays off 50 or more workers. Federal law requires those large employers to file a public WARN notice with the state 60 days in advance of mass layoffs or plant closures. Those WARN notices are published by the Alabama Department of Commerce.
In 2023, mass layoffs — primarily in the manufacturing industry — affected more than 4,000 workers.
That was a big jump at the time, closer to 2020’s peak of more than 5,000 job cuts in mass layoffs.
In the two years that followed, mass layoffs dipped drastically, impacting about 800 jobs per year in 2021 and 2022. Last year’s levels dipped much closer to 2019, which recorded roughly 1,800 layoffs, per WARN notices.
In 2024, the economy saw broad improvements, Addy said, buoyed by the Federal Reserve’s moves to slowly and incrementally lower interest rates. He pointed to broader employment numbers to put layoffs into context.
“Mass layoffs, as a share of total employment, it’s smaller for last year than the previous year,” Addy said.
Even though there were more unemployed people, on average, in the state last year than in 2023, total employment was up. The average monthly number for total employment in Alabama last year was 2.27 million, up from 2.25 million in 2023, according to the Bureau of Labor Statistics.
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In 2024, Auburn saw the highest share of layoffs, with 267 employees in the area reportedly losing their jobs. That was split between two mass layoffs. In August, Auburn University ended its contract with custodial service provider Sodexo Inc. and Affiliates, laying off 170 employees. Previous Sodexo employees were able to apply for positions with Auburn’s new custodial partner, ABM.
And earlier in the year, Thermo Fisher Scientific closed its biotechnology plant in Auburn, laying off nearly 100 workers. Auburn’s economic development department helped find every employee a new position within three months, and the site has since been sold to another company, said city spokesman David Dorton.
“Our Economic Development department has dedicated workforce staff which immediately mobilizes to set meetings with employees in an affected industry and will pretty quickly provide resume assistance workshops, mock interviews, and specialized job fairs on site for affected employees,” Dorton said in an email to AL.com. “They’ve got a great track record of placing a very high percentage of employees in other positions within a short period of time.”
Meanwhile, one of the mass layoffs in Alabama impacted roughly 160 workers statewide, when Walmart ended its contract with Florida-based sales company T-ROC, said Stefania Jones, spokeswoman for the Alabama Department of Commerce.
Total layoffs for Alabama in 2024, which include cuts by small businesses, were just below the previous year’s level. The Bureau of Labor Statistics reported 223,000 layoffs for total nonfarm employers in Alabama between January and October, down just 2% from the same period in 2023.
Not included in 2024’s layoffs headcount were three employers who filed notices of pending layoffs at the end of 2024, which are expected to impact nearly 800 employees combined within just the first five weeks of the new year. In November, the Boeing Company filed its second WARN notice of the year, reporting layoffs of 158 employees in Huntsville earlier this month.
In December, Big Lots reported that it planned to layoff nearly 500 employees at its distribution center in Montgomery early this month as part of the company’s nationwide closures, according to a WARN notice. Auto parts manufacturer WKW North American LLC also filed a WARN notice with planned layoffs of 140 employees in Pell City starting next month.
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