ABC Financial Services Inc, Sherwood, Arkansas, has laid off 42 employees in a move affecting seven percent of its workforce in Arkansas and five percent of its overall workforce.
"After reviewing staffing levels and client needs and expectations, the decision was made to eliminate positions at ABC Financial," ABC Financial Chief Revenue Officer Steve Ayers told Club Industry in an e-mail on Wednesday. "This is in direct response to customer and market demands and changes, and our workforce was adjusted appropriately. This adjustment and constant review of our business is part of our ongoing improvement strategy and commitment to efficiency for our clients."
The employees were laid off after hoped-for business failed to materialized, Arkansas Business reported on Tuesday.
"ABC had ramped up in preparation for onboarding a very large new customer in fourth quarter 2014 and into first quarter 2015," CEO Paul W. Schaller said in a statement provided to Arkansas Business. "We were able to accomplish that onboarding task and had hoped we could maintain our momentum with additional new growth and retain all full time positions that had been added."
By the end of the second quarter, ABC's leadership determined there were too many positions for the servicing work available, Schaller said.
On Monday in a review posted to GlassDoor.com, an anonymous on site implementation manager claimed employees were used to take care of a large client and ABC Financial miscalculated how many people were needed for the job.
"I am so sorry for your experience," ABC Financial Chief Human Resources Officer Bill Murray replied in response to the reviewer. "This was the first layoff in our history and a difficult decision to make."
Ayers said the affected employees were treated with sensitivity and provided with resources to help manage their transition.
"ABC will continue to move forward with focus and accountability to our clients," Ayers said.
Founded in 1981, ABC Financial's billing and health club management software services cover 6,600 clubs throughout the United States, Canada and Puerto Rico according to its website. Its vendors include Seas & Associates LLC, Medallia, dotFit, FitRewards and Netpulse.
ABC Financial is a subsidiary of Jim Bottin Enterprises, which reported $136 million in revenue in 2014, according to Arkansas Business.