The loss of a major client has led AMS Fulfillment to make staffing cuts that could affect up to 200 employees.
The Valencia company is a third-party provider of fulfillment services, shipping out product for about 35 client companies. One of its larger accounts, Santa Monica footwear manufacturer TOMS Shoes, was in need of 500,000 square feet of warehouse space that was not immediately available in the Santa Clarita Valley.
The retailer notified AMS two months ago that it would be moving to a location about an hour south of Valencia that was available and operated by a competing fulfillment firm, said AMS Chief Executive Ken Wiseman in an interview on Friday.
“It was a sound business decision they made,” he said. “We are not bitter about losing it.”
The cuts were disclosed in a Worker Adjustment and Retraining Notice filed Thursday with the state Employment Development Department. The notices, required of businesses laying off more than 50 employees in one month, give employees 60 days’ notice so they have time to seek other jobs.
AMS is doing all it can to retain as many workers as possible, including finding replacement clients. In addition, the competing fulfillment company has agreed to offer positions to AMS employees let go, Wiseman said.
“We cannot win enough business to keep them all,” he said.
After the cuts take affect the company will still have more than 200 employees.