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.
According to reports to the Texas Workforce Commission, layoffs will start immediately and go until late August.
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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 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.
Zachry incurred approximately $300 million in unsecured debts as part of its bankruptcy filing. 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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