More jobs have been claimed by the coronavirus pandemic, with Life Time confirming Wednesday that it'll lay off 1% of its workforce as a result of significant financial downturn over the past 3-4 months.
Life Time sent a mass layoffs report to the Minnesota Department of Employment and Economic Development (DEED) that says 250 employees at its Chanhassen headquarters will be laid off permanently by Aug. 18, with another 51 employees being laid off at its Millworks facility in Chaska.
In a statement to Bring Me The News, a Life Time spokesperson said the statewide shutdowns related to COVID-19 "inflicted considerable negative financial impact on our company," adding that "it may take some months before membership growth and traffic resume to normal levels."
The statement continued: "With this unforeseen business interruption and impact, we have implemented difficult, but necessary, action to reduce our operating expenses, including a 1% reduction in our total workforce. The vast majority of this impact is in our real estate, architecture and construction departments given the temporary suspension of new club and business development."
The layoffs won't impact workers immediately, with them expected to take effect on Aug. 18.
"Needless to say, a difficult day," the spokesperson added.
A mass layoffs report is required by DEED whenever 50 or more workers are put out of work at once. Since the pandemic first began significantly impacting Minnesota, there were 104 companies to report mass layoffs of at least 50 employees through the end of May, according to DEED records.