Company fires 600 workers after collecting $1.25M in state incentives

Conduit Global will lay off nearly 600 workers in Memphis after spending $1.25 million in state incentives provided for construction and training, reports the Commercial Appeal.

However, the company, which disclosed the layoffs Wednesday, is not yet in danger of having to repay the state of Tennessee.

Conduit Global promised to provide 1,000 new jobs at the call center that opened last year, but the New York firm has until Dec. 15, 2018, to reach its jobs target before the state could seek to “claw back” any of its $1.25 million.

“The grant term is five years, and the department is monitoring the project closely,” said Clint Brewer, Tennessee Department of Economic and Community Development assistant commissioner for communications and marketing.

“We are hopeful that during the grant term Conduit Global will meet its employment obligations,” Brewer said by e-mail.

Conduit Global on Wednesday told its employees as well as the state that it will lay off 592 employees by July 2 due to an unexpected loss of a client for its customer care call center services. The pink slips began that day, with about 90 wireless trainees, according to information the company filed with the state.