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May 5, 2020

Car rental giant announces layoffs in Stratford due to virus’ impact

By Michelle Tuccitto Sullo

Enterprise Holdings, parent company of Enterprise, National and Alamo car rental operations, has notified the state that it intends to lay off 77 employees based in Stratford.

In an April 30 letter to the state Department of Labor, Gina Hernandez, a human resources generalist with the company, cited the negative impact of the COVID-19 pandemic on business for the company’s decision.

“As a result of a series of unforeseen local governmental shutdown orders and federal and [Centers for Disease Control] guidance recommending social distancing surrounding the coronavirus natural disaster, Enterprise Holdings experienced a dramatic downturn in business,” the letter states.

The layoffs are at the company’s facility at 1400 Stratford Rd., Stratford, and the separations were expected to take place on April 30 or within two weeks afterward, the notice states.

The impacted positions include 68 drivers, five lot attendants, an executive assistant, account manager, inventory coordinator and staff accountant. The company initially believed the virus would impact the business’ operations for only about one month, but now realizes it will be much longer. Some employees had previously been placed on temporary layoff status. At this time, the company expects the mass layoff “to be permanent,” according to the notice.

Sara Miller, a spokesperson for Enterprise, said impacted employees will be eligible for rehire if business levels rebound following the pandemic.

“The COVID-19 global health crisis has created significant and unprecedented challenges for Enterprise Holdings. Like others across the travel industry, we have witnessed a severe impact to our business with corporate business and leisure travel still at a standstill. While our confidence in our future remains high, we must continue to make decisions now to support the long-term health of the organization, even when those decisions are extremely difficult," Miller said via email Tuesday.

In recent weeks, she said the company has taken several actions, including limiting the use of third-party contractors, instituting a hiring freeze, reducing overall discretionary spending, reducing the hours of part-time staff, adjustments to senior executive and employee compensation, and temporary furloughs.

"We've also announced some permanent workforce reductions as a result of the continued impact COVID-19 is having on our business," Miller added. "We recognize the deeply personal impact these actions will have on our team members, making this an especially difficult moment in our long history. We are committed to taking care of our colleagues, including providing severance and other resources to support the transition of those impacted by these decisions. We extend our sincere appreciation to each of them for their unwavering dedication and support of our company over the years.”

The company has made a number of changes in response to the pandemic, according to its website. While some branch locations are still operating, some rental locations are closed until further notice. Enterprise indicated that it has ramped up cleaning and disinfecting its vehicles, per guidance from health officials.

Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.

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