Not only that, but the mortgage servicing business is cyclical in nature; when a major contract ends, it can sometimes be hard to line up new work.
Well, apparently that's what happened at Wingspan Portfolio Advisors, which has confirmed a round of layoffs at its call center facilities in Monroe, La., and Melbourne, Fla.
In a statement, company officials said, ‘Wingspan remains committed to its presence in [Monroe and Melbourne]. It is in the nature of our work with large financial institutions to wrap up specific contracts for services and to have brief periods of time before new contracts begin. Today, a number of employees were impacted at our [Monroe and Melbourne] location[s].’
Company officials did not disclose the exact number of layoffs.
Wingspan acquired the Monroe facility from JPMorgan Chase last year. At the time, it gave all 400 JPMorgan employees who worked there the opportunity to continue their employment with Wingspan. In addition, the company promised to bring 532 new jobs to the area over the next 10 years.
However, according to a report in local online news website The News-Star, the Monroe call center now has fewer than 100 employees. According to the report, neither the Louisiana Economic Development (LED) department nor the City of Monroe's economic development officer was given prior notice of the layoffs – probably not a good thing, considering that the state provided incentives for the company to take over the facility.
To secure the Monroe project, the LED department's Business Expansion and Retention Group offered a custom incentive package that included free state workforce training and a performance-based grant of $600,000, payable in three annual installments through 2015, to reimburse facility lease costs.
Wingspan was also to receive a performance-based grant of $500,000, payable in two annual installments in 2013 and 2014, to reimburse building renovation costs. The company was also expected to utilize Louisiana's Quality Jobs Program.
Several workers from the Monroe facility told The News-Star that they were being ‘furloughed’ and that they might be offered their jobs back in the weeks and months to come.