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Gate Gourmet announces mass layoff; LSG Sky Chefs offers rehiring opportunity

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Gate Gourmet announces mass layoff; LSG Sky Chefs offers rehiring opportunity
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Christoph Schmitz Chief Executive Officer at Gate Gourmet | Gate Gourmet Website

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.

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However, Strauss Borrelli PLLC is investigating whether Gate Gourmet fully complied with all WARN Act provisions. Employees affected by violations may be entitled to severance pay and benefits for up to 60 days.

Despite initial concerns, there is hope for laid-off workers as LSG Sky Chefs plans to rehire most of them. Ted Waechter from Unite Here Local 2 confirmed that LSG Sky Chefs intends to hire former Gate Gourmet employees. Kimberly Plaskett from LSG Sky Chefs stated they plan on "hiring personnel that includes former employees of Gate Gourmet."

San Francisco International Airport's worker retention policy plays a significant role in protecting these workers by requiring new contractors to hire employees from previous contractors during transitions. This policy ensures continuity of service and job security while maintaining service quality for airlines and passengers.

Additionally, California's Employment Development Department offers unemployment insurance benefits and job search assistance for qualified workers who lost their jobs without personal responsibility. The Workforce Innovation and Opportunity Act provides funding opportunities for workplace training courses that enhance employability.

As air traffic expands at SFO, skilled catering workers will likely find strong employment prospects in this evolving market focused on high-quality inflight dining experiences.

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