A Janesville-based document and data management company may have to lay off 260 employees at its facility in the city if it doesn’t renew a contract that can fund immediate operations.
Through a warning notice sent to the Wisconsin Department of Workforce Development, Data Dimensions says the contract hanging in the balance is contingent on the effects of the COVID-19 crisis. If layoffs are required, the layoffs would happen on or after the close of business on May 29.
Data Dimensions earlier this year was acquired by St. Louis private equity firm Thompson Street Capital Partners. Thompson Street made the deal in partnership with Chicago-based venture capital firm Sandbox Insuretech Ventures.
Data Dimensions, which had about 1,000 employees as of January, was previously owned by Tampa, Fla.-based HealthEdge Investment Partners, which bought the Wisconsin company in 2014.
The bulk of positions impacted by the layoffs at Data Dimensions are document processors.
In the notice to the DWD, company officials stated the COVID-19 epidemic has caused unforeseen disruptions on business operations. “If these unforeseen disruptions continue, Data Dimensions may also be required to lay off employees in advance of the anticipated layoff date of May 29, 2020”, the statement reads.
Data Dimensions serves companies operating within property and casualty insurance, financial services and government. The company reported revenue of $72.7 million for 2015, when it ranked No. 1,869 on the Inc. 5000 2016 list.
