The operator of the Lake City Army Ammunition Plant in Independence, Missouri, is terminating 70 workers after the prime contractor lost its contract to run the facility.
In a WARN Act notice filed last week, XPO Logistics Supply Chain Inc. said the terminations will take effect beginning September 30 and extend over two weeks.
The plant, one of the biggest employers in Independence, makes small-caliber ammunition for the U.S. military.
Joe Checkler, a spokesman for XPO, said at least some of the workers will likely be hired by the new contractor.
“Typically in these cases the new company that takes over just hires these people,” he said. “But we’re required to file this notice anyway.”
Checkler added that there was a process already in place for the employees to apply for jobs with the new contractor.
In September, Olin Winchester won a U.S. Army contract to operate and modernize the plant, which opened in 1941 and sprawls across nearly 4,000 acres. The plant had previously been run by defense contracting giant Northrup Grumman.
XPO had a subcontract to run the plant, which employs roughly 2,000 people. The 70 employees slated to lose their jobs work for XPO.
XPO, a publicly traded company based on Greenwich, Connecticut, manages supply chains for 50,000 customers around the world. The company last week reported second-quarter revenue of $3.5 billion, down from $4.24 billion a year earlier, and a net loss of $132 million compared with $122 million in net income a year earlier.
