Stubborn shutdowns trigger fresh round of Bay Area job cuts
Some Bay Area companies have begun to switch from furloughs to layoffs for large numbers of employees amid coronavirus-linked business shutdowns that have been reinstated or have yet to show signs of ending.
Among the latest to reveal job cuts for one reason or another: VMWare, downtown San Jose’s Hilton Hotel, Ver ita s, Black hawk Country Club, Gap, Chartwells, and Silver Creek Sportsplex in San Jose.
“VMWare has developed plans to implement a workforce reduction at its facility located at 3401 Hillview Ave. in Palo Alto,” Sean McConnell, a VMWare corporate counsel, wrote in an official notice this month to the EDD.
Pa lo A lto -ba sed V MWare said the layoffs affect 148 workers and will occur in October and December at the company’s headquarters, according to the notice, which the EDD received on Aug. 17.
In recent weeks, some Bay Area companies said they are so uncertain about plans by state and local government agencies regarding reopening and restrictions that they decided to reduce staffing, filings with the Employment Development Department show.
T he Hilton Hotel i n downtown San Jose and LSI-Silvercreek, a south San Jose fitness and sports center, each cited the uncertainties of government rules and mandates in official notices sent to the EDD.
“We did not foresee that ‘lockdown’ orders, initially issued for short durations in certain specific cities, would spread throughout the country and be constantly and continually ex
tended or changed,” Jimmy Sarfraz, general manager of the Hilton San Jose, wrote in the notice. Hilton laid off 126 workers, effective Aug. 10, at the hotel, located at 300 Almaden Blvd. in downtown San Jose.
T he cascade of shutdowns did more than interrupt travel and commerce for a short period. It also disrupted commerce and travel for the “foreseeable future,” Hilton stated in the notice.
Hilton also blamed government officials for an unexpected new round of shutdowns.
“C ontra r y to our expec tations, Santa Clara County and the state of California have just re - cently extended shelter in place requirements, continued social distancing requirements, and limitations on large indoor gath
erings which continue to impose substantial limits on our operations at this location,” Sar fraz stated in the notice.
Future staffing needs are almost impossible to calculate given the uncertainties created by state and local authorities, the hotel said.
Si mi la rly, L SI- Si lver - creek, operating as ClubSport and Sportsplex, said county and state officials have unleashed far too much uncertainty regarding the nature or scope of operations that would be allowed at the fitness club.
“L SI- Si lvercre ek w a s unable to gauge exactly what socia l d i s t a nci n g and other requirements the loc a l count y public health officials would impose on Spor tsplex and ClubSport, if and when it does permit full reopening,” Jennifer Brown, a hu
man resources executive with the company, wrote in the notice.
The lack of clear guidance affected an array of options for Sportsplex and ClubSport.
“The company was unable to predict the ty pe of ser vices that it would be able to provide, the reduced number of clients that it would be able to serve under the county’s guidelines, or the actual number of clients w illing to utilize Spor tsplex or ClubSport once it reopened under the county guidelines,” Brown stated in the notice.
As a result, ClubSport and Sportsplex laid off a total of 139 workers, a July 28 notice stated.
Danv ille -ba sed Blackhawk Country Club has decided to lay off 58 workers, due to the discovery of a
possible coronavirus exposure for one of the employees at the East Bay club and golf course complex.
The club launched the layoffs, which are temporary, out of safety concerns, according to the notice.
In San Francisco, Gap, which had previously disclosed plans to shut numerous retail stores amid a collapse in sales, a rent squeeze, and dispute with its landlord, had included its flagship store at Market Street and Powell Street in San Francisco in the closure plans.
“Approximately 79 employe e s a r e a f fe c t e d ,” Joanne Rafferty, Gap senior director human resources, wrote in the notice. The layoffs took place in early August.
Veritas Technologies, in a tech company layoff, said it was cutting 74 jobs in Santa
Clara between late August and Nov. 30. The cuts were expected to be permanent.
A ser ies of decisions by college sports associations to cancel live events with fans in attendance for a leng thy period of time prompted Chartwells to launch the layoffs of 56 workers at San Jose State University. Chartwells provides dining services.
“W hile t he se a c t ions are permanent, all terminated team members have been invited to apply for future employment as positions become available when business levels return follow ing the pandemic ,” Mr i na li n i S en, hu ma n re sou rc e s w it h Compass Group, owner of Chartwells, stated in the notice.