CareerSource Tampa Bay, which helps place out-of-work Hillsborough County residents in jobs, is cutting its own workforce.
The agency has informed the state that it will lay off 51 employees after outsourcing its Workforce Innovation and Opportunity Act (WIOA) Adult and Dislocated Worker Program, which provides job search and training assistance.
The affected workers aren’t losing their jobs just yet. The agency in January voted to outsource that program to a Michigan company called Educational Data Systems, Inc. When the transition takes effect June 30, those 51 employees will switch from CareerSource’s payroll to Educational Data Systems’.
“We don’t anticipate really any job losses,” said Doug Tobin, a spokesperson for CareerSource Tampa Bay. He said the agency is trying to make it a “seamless” transition.
Among the positions being eliminated from the CareerSource rolls, according to a notice filed with the state: career coaches, recruiters, workshop instructors and specialists for career services and re-employment.
CareerSource Tampa Bay is a non-profit that uses millions in federal dollars to help people find and train for jobs. It is part of a network of similar agencies across Florida.
The Tampa Bay office covers Hillsborough County. It used to be run by the same director as CareerSource Pinellas, but the two separated years ago amid a controversy involving questionable job placement reports and bonuses paid to employees who increased hiring numbers. Lawmakers are now exploring reforms for Florida’s workforce development system.
Tobin said the outsourcing idea stems from recommendations made by the U.S. Department of Labor. Federal regulators who reviewed CareerSource Tampa Bay and CareerSource Pinellas under former leader Ed Peachey criticized the agencies for flouting rules and fostering a poor work environment. Peachey was fired before that report. The two organizations are under new leadership.
CareerSource’s workforce reduction was the second mass layoff in Tampa made public in as many days. On Monday, the state posted a notice that clothing manufacturer Perry Ellis International plans to shut down a distribution center on W Waters Ave. on July 1, resulting in the loss of 114 jobs.