A publicly traded payments technology firm will lay off dozens of workers when it shutters its Seminole County office next year.
Deluxe Corp. (NYSE: DLX) will cut 58 jobs at its Longwood office at 140 Wekiva Springs Road, according to a letter sent to the state on Sept. 8. The Minneapolis-based company expects to close its Longwood facility by Feb. 28, which is when the layoffs are expected to take effect, per the letter.
The following positions will be cut due to the closure:
- Processing specialists II - operator: 20
- Processing specialists II - data entry: 9
- Lead operations: 7
- Processing specialists I - operator: 5
- Manager of operations processing: 4
- Processing specialists IV: 3
- Customer engineers: 2
In addition, multiple other positions including analyst, director and manager roles each will have one person laid off, per the letter. Deluxe notified its employees of the layoffs on Sept. 8.
Deluxe — which processes $3 trillion in payment volume each year — will close the office because it is reducing its real estate footprint, according to the letter.
As of Dec. 31, the company operated 50 U.S. facilities where it houses printing/fulfillment operations, payment processing work, call centers, data centers and administrative offices. Deluxe in 2020 shuttered 24 properties, plus another 16 in 2021, according to a U.S. Securities and Exchange Commission filing.
In the past 18 months, the company has focused on cost savings in its real estate footprint, spokesman Cameron Potts told Orlando Inno. That includes consolidating work in certain areas, Potts said. “We made the difficult decision to close our Longwood facility, impacting our employees in that facility. We made the announcement now to give our employees significant notice of the closure coming at the end of February 2023.”
It’s unclear how many people Deluxe has laid off since 2020. Despite the 24 facility closures in 2020, Deluxe’s U.S. workforce grew from 5,487 employees in Dec. 31, 2020, to 5,645 employees in Dec. 31, 2021, per SEC filings.
However, the company expects to save $20 million in 2022 due to employee cuts and save $4 million this year due to facility closures, according to an Aug. 5 SEC filing. Deluxe recorded $563 million in revenue in the second quarter, up 17.7% year-over-year, according to its latest financial results.
Meanwhile, U.S.-based employers as of August reported the majority of reported job cuts this year — a total of 41,948 — were due to “cost-cutting,” according to Chicago-based outplacement firm Challenger, Gray & Christmas Inc. Roughly 27,178 cuts were due to market conditions.
“Employment data continue to point to a strong labor market. Job openings are high, layoffs are low and workers seem to have slowed their resignations. If a recession is imminent, it’s not yet reflected in the labor data,” Andrew Challenger, senior vice president of Challenger, Gray & Christmas, Inc., said in a prepared statement.
Plus, U.S. tech sector companies added 25,500 net new workers in August, according to the Computing Technology Industry Association. Tech hiring is stable, CompTIA Chief Research Officer Tim Herbert said in a Sept. 2 report. “Despite all the economic noise and pockets of layoffs, aggregate tech hiring remains consistently positive.”
OBJ Staff Writer Ryan Lynch contributed to this report.
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