MONTGOMERY, Ala. (WSFA) - Online food delivery service company Waitr is delivering some bad news to thousands of its drivers. They’ll soon face layoffs. Many of those drivers are in Alabama.
According to the Alabama Department of Commerce’s Worker Adjustments and Retraining Notification List, or WARN List for short, the company notified state officials on Feb. 3 of its plans to layoff 491 drivers statewide. Those layoffs would be effective as of April 6.
The WARN List requires companies to give a minimum 60-day notice of mass layoffs.
According to WAFB-TV in Baton Rouge, the Lafayette, Lousiana-based company is laying off 2,300 drivers in its home state and more across the country.
The reason for the layoffs? Waitr wants to restructure its employment model. Delivery drivers are currently paid hourly and the company wants to shift to contract-based employment.
KPLC-TV in Lake Charles, La., reports that the company’s stock has dropped from $11.75 since going public in late 2018 to less than a quarter per share a year later with plans to leave some markets and reduce its workforce.
According to the company’s website, it currently serves customers in dozens of cities across ten states including Alabama, Arkansas, Florida, Georgia, Lousiana, Mississippi, South Carolina, Tennessee, Texas, and Virginia.