BUFFALO, N.Y. — Another local business is laying off its employees in response to the on-going COVID-19 crisis.
New Era Cap Company, headquartered in downtown Buffalo, announced Friday it will furlough the bulk of its workforce. A rapid downturn in business, combined with the cancellation of sporting events around the world, were given as reasons for the move.
“In my 40 years at New Era, I have never experienced a series of events that have so quickly and adversely impacted our business,” said Chris Koch, New Era’s CEO. “We felt we had no option but to move quickly to a temporary furlough in order to ride out this sudden economic downturn. This decision was not made lightly, and I regret the impact it will have on our employees. Their dedication and commitment to my family’s business has always been what has made New Era successful and we will do everything we can to get our employees back to work as soon as possible when our industry begins to return to normal.”
The layoff will start this Monday, March 30, for approximately 70 percent of the company's 600 workers, including those in Buffalo, New York City, Miami and Irvine. The furlough is expected to last 60 days.
Koch says he will forego his salary for the rest of the year in an effort to cut costs. There will also be a reduction in pay for senior staff who remain on the job during this time.
Employees who are laid off will continue to get their full medical benefits and support services through New Era's employee assistance program as well as help accessing all local, state and federal help available to them.
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