Sykes laying off 377 in Fayetteville
Sykes Enterprises Inc. is laying off 377 employees at its Strickland Bridge Road location at the start of July, according to a filing with the N.C. Department of Commerce.
The state’s WARN reports indicate that the layoffs are temporary. The Worker Adjustment and Retraining Notification Act is a labor law that requires most employers with 100 or more employees to provide 60-day advance notice of plant closings and mass layoffs.
Robert van Geons, who is president and CEO of the Fayetteville Cumberland County Economic Development Corp., said Tuesday evening that according to information from the company’s main public relations office, Sykes’ current client will be transitioning out of the facility before the company brings in two new accounts.
According to those plans, van Geons said, Sykes will restaff at even higher wages.
The layoffs will take effect July 7. Among the employees being terminated, Sykes stated that 336 are customer service agents and 15 are team leaders.
The mass layoff will include individuals from 18 different positions at the site, indicating a potential shutdown of operations at the site.
Source – The Fayetteville Observer
Sykes Enterprises, Inc. 401k Savings Plan & Trust is a defined contribution plan with a profit-sharing component and 401k feature. This plan has a BrightScope Rating of 46.
That being said, the rating of 46 versus a top rating of 90 could equate to 22 additional years of work and/or $250,939 in lost savings.
The plans administrator is Charles Pascual and is handled in Tampa, FL. Principal Financial Group is the Recordkeeper.
One of the key concerns is that the plan only has 29 investment options which is common for most 401k type plans.
Most 401k, Profit Sharing or ESOP plans do not have active management so there really is no one guiding the plan investments. What this means is that like most traditional investment companies, in the event of an economic downturn there is no method for automatically moving your portfolio to a lower risk profile.
With the WealthSentry system we participate in, accounts are automatically re-balanced to lower risk portfolios in the event of a severe economic downturn. Learn more in our guide, 6 Critical Steps You Must Take Now.
For an in-depth analysis of your options feel free to make an appointment, read one of our guides or participate in one of our workshops.
Wishing you the best.
Doug Reed, CRPC, AAMS