On March 12, 2025, Gate Gourmet announced the layoff of 835 employees at San Francisco International Airport (SFO), marking the largest mass layoff in California this year. The company attributed the decision to "the recent loss of a customer account." These layoffs primarily affect food preparers, dishroom attendants, and equipment setup personnel. Many workers are represented by the International Brotherhood of Teamsters and Unite Here Local 2 unions.
The layoffs are scheduled to take effect on May 13. Gate Gourmet informed California's Employment Development Department that losing a customer account necessitated workforce reductions and worksite relocation. Although the specific account was not disclosed, United Airlines' new catering strategy prompted operational changes. Historically, United Airlines has been Gate Gourmet's largest contract at SFO.
Concerns have arisen regarding compliance with federal employment law regulations due to these staff reductions. The Worker Adjustment and Retraining Notification (WARN) Act requires businesses with over 100 employees to notify them about major closures or layoffs at least 60 days in advance. Gate Gourmet issued its WARN notice on March 12, meeting this requirement.