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Tuesday, March 19
The Indiana Daily Student

ModusLink to lay off 320 workers

Local technology company ModusLink PTS will release 320 of its Bloomington-based production employees in April, according to paperwork filed with the Indiana Department of Workforce Development. The mass layoff was prompted by the loss of a major customer, according to the filing.

“This closure is yet another example of the fragile nature of employment in this economy,” Bloomington Mayor Mark Kruzan said. “Our thoughts go out to both the employees and the management of ModusLink, as they all are suffering the consequences of the closure.”

ModusLink PTS is a subsidiary of the Massachusetts-based ModusLink Global Solutions. The company provides after-market electronic repair and services, according to the company website. The company announced the layoffs in paperwork filed with the Department of Workforce Development due to federal regulations regarding mass layoffs, Department of Workforce Development spokesperson Joe Frank said.

The layoffs, which will begin in April, will affect six salaried, 187 hourly and 127 temporary positions, according to the filing. The layoffs affect ModusLink’s facility located on Curry Pike on the west side of SR 37. ModusLink PTS did not respond to a request for comment.

“We are working with the State of Indiana, which has served our community very well when it comes to assisting displaced employees in the past,” Kruzan said.

The assistance from Indiana state government comes in the form of the Department of Workforce Development, which assists local governments in mass layoff ?situations.

“We meet with their employees to integrate them into our services as quickly as possible,” Frank said of the ModusLink situation. “We’re already engaged with them.”

Workforce Development “Rapid Response” teams meet with affected employees soon after mass layoff paperwork is filed with the department, Frank said. These teams work with employees to educate them about department programs, including direct job placement, free jobs training and certification programs, as well as résumé and ?interview workshops.

These programs are run through WorkOne Centers, which act as local arms of the state agency.

The department works with businesses and potential employees to fill needs and maintain a highly educated workforce, according to the department’s website. Despite the Bloomington closing, the department remains optimistic about the overall jobs situation in Indiana.

“These types of issues are a commonplace occurrence during any time, but they are occurring less than not only during the Great Recession but even before that, back to 2000,” Frank said.

In the past year, Indiana’s labor force has grown by 84,000 workers, two times as much as any other Midwestern state, Frank said, with around 26,000 manufacturing jobs being created in the ?same period.

Despite the overall economic outlook, this period will be a difficult one for ?affected workers, as Kruzan highlighted.

“Most of all, we simply want to support our neighbors and their families as they endure this loss of opportunity,” Kruzan said.

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