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April 10, 2020

Seven Central Mass. companies announce 475 layoffs

Photo | Google Sheraton Framingham Hotel & Conference Center

Seven Central Massachusetts businesses have filed notice with the state of a combined 475 layoffs in the latest sign of how employers are dealing with coronavirus pandemic-related economic hardships.

It isn't clear how many of the layoffs are expected to be temporary.

The businesses each filed required notices with the Massachusetts Department of Career Services under the Worker Adjustment and Retraining Act, which requires companies to give advance notice to help those being laid off with job searches or retraining. Each have been filed since Gov. Charlie Baker first banned large gatherings and canceled weeks of school on March 15.

Sheraton Framingham Hotel & Conference Center said it laid off 113 people, and retail distributor Potpourri Group in Littleton and D'Ambrosio Eye Care, which has locations in Acton, Gardner, Athol, Lancaster, Leominster and Worcester, both said they are letting go of 80. 

[Related: Another 140K Mass. workers file for unemployment]

A&M LLC in Natick announced 76 layoffs and ERI, a recycling firm in Holliston, announced 68. The food service company HMSHost in Framingham said it is laying off 42 workers, and North American Dental Group in Worcester is laying off 16.

Sheraton Framingham General Manager Brian Smith said the hotel's layoffs are meant to be temporary while the Sheraton faces a big drop-off in occupancy rates.

"There's definitely our expectation," Smith said. "There's a lot of unknowns right now."

Announced layoffs under the Worker Adjustment and Retraining Act have been dramatically higher in number since the coronavirus outbreak forced many businesses to close temporarily, scale back their hours or send employees home to work remotely. In the workweek ending April 3, a total of 17 Massachusetts companies announced layoffs.

[Related: Report: Mass. jobless rate could hit 25%]

The number of people out of work — at least temporarily — is far higher. Roughly 470,000 Massachusetts workers have filed new unemployment claims in the past three weeks, according to the U.S. Department of Labor. That's about 13% of the state's non-farm workforce of around 3.6 million.

Maryland-based HMSHost said in a message online it is furloughing most of its workers. It is providing an additional 14 days of paid leave for any employees diagnosed with the virus and strictly enforcing a policy that workers stay home if they feel ill.

"But the reality of our situation is that absence income from our stores; we simply have no choice but to furlough the majority of our team members," the company said. "For those salaried associates not furloughed, pay has been reduced to help fund on-going medical benefits for our furloughed associates. The actions we are taking now will give us a fighting chance to get through this crisis so that our people will have a place to come back to when travel by car and plane resumes."

[Related: Worcester's Niche Hospitality temporarily closing all restaurants]

Pennsylvania-based North American Dental Group also posted a message online to its employees.

"For those of us on furlough right now, homeschooling our children, or caring for our elderly family and neighbors, I want each of you to know that we are here for you too," CEO Ken Cooper said. "The NADG HR team has been working non-stop gathering information to assist each of you. More to come on this topic and please take a moment to check your emails for announcements when you have the time. We will continue to use email as our primary form of global communication through this crisis."

The other Central Massachusetts companies that announced layoffs didn't immediately return messages for comment Friday afternoon.

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