WFCN —
More than 4,000 jobs will be lost as a result of the devastating layoffs announced by a bankrupt Texas corporation.
The Baytown, Beaumont, Orange, and Sabine Pass locations of Zachry Holdings, headquartered in San Antonio, would be laying off 126 more workers.
The announcement comes as the corporation is getting ready to back out of a $10 billion project, further aggravating an already difficult situation for its employees.
Zachry Holdings announced the layoffs of almost 4,400 employees in late May, following their bankruptcy.
The company’s position as the principal contractor of the large Sabine Pass facility, located just south of Port Arthur, was cited as the reason for the bankruptcy and early layoffs.
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Layoffs will start immediately and go until late August, according to reports to the Texas Workforce Commission.
In the event of a large-scale layoff, companies are normally obligated to inform their employees by filing a WARN notice, which stands for Worker Adjustment & Retraining Notification.
Zachry is very sorry for the trouble this has caused and wants to express its disappointment that Golden Pass won’t pay it enough to finish the job using the money that’s in the EPC Contract.
According to Zachry, this in no way indicates that the work of its workers, subcontractors, or vendors was of low quality.
As part of its bankruptcy filing, Zachry incurred approximately $300 million in unsecured debts. Additionally, the company is also facing a class action lawsuit regarding the failure to provide adequate warning for the May mass layoffs.
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Extra Economic Updates for Today
A bankrupt company has announced painful layoffs in Texas, according to today’s market news.
According to today’s market news, a bankrupt company in Texas has announced painful layoffs.
Unemployment benefits applications have just reached record highs, suggesting that the once sweltering job market is beginning to cool down.
The number of people applying for unemployment benefits for the first time reached 231,000 last week, according to CNN, the highest level since August.
1.78 million people have applied for unemployment benefits for at least one week, which is known as continuing claims, according to figures released on Thursday.
The Bureau of Labor Statistics reports that this represents a 17,000-person gain from the previous week.
The most recent figures follow a shorter-than-expected monthly jobs report that revealed the US economy added only 175,000 posts in April, a significant decline from previous months and lower than economists had predicted.
Since 2023, when it was 251,000 a month, US firms have increased the average number of jobs they add each month to 245,500.
Hiring is still going strong, though. The unemployment rate has remained below 4% for 27 straight months, matching a trend last seen in the late 1960s, despite a little increase to 3.9% last month.
According to Chris Rupkey, chief economist of Fwdbonds, while one week’s data “does not a trend make,” the weekly unemployment claims data is known for its volatility.
“Based on today’s weekly jobless claims, it seems that the US economy is far from calm.”
“Companies are showing signs of increasing layoffs, which may indicate that they are being cautious as they assess the outlook for the second half of the year,” he wrote in a note dated Thursday.
Inflation has been a problem, so the Federal Reserve has been trying to slow the economy by raising the main lending rate.
In spite of eleven rate hikes by the central bank, the labor market has remained hot for the previous 18 months. previous week, Fed Chair Jerome Powell noted that demand has “cooled from its extremely high level of a couple of years ago.”
While noting Thursday that “we’d need to see at least a month of elevated readings to convince us that the trend really has turned,” Pantheon Economics’ Ian Shepherdson said:
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