LAZ Parking plans to lay off 247 workers at Los Angeles International Airport due to a loss of parking facility closures in October — though a lion’s share of that workforce could be rehired as the airport transitions to its long-delayed airport train.
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LAX and other officials told the Southern California News Group that a majority of the laid off workers could be rehired when the airport’s “People Mover” train service becomes operational — though nothing is certain as unions are involved in these negotiations, and the contractor on the project has faced several delays in construction since it began in 2019.
The airport train contractor, called LAX Integrated Express Solutions, or LINXS, is targeting the opening of its $3.3 billion passenger service for October — but LAX officials have never confirmed that date. The train service is technically known as the Automated People Mover, or SkyLink.
The fully electric SkyLink will connect six stations across the airport and directly to the Metro rail system and bring all rental-car companies together at a single off-site facility. SkyLink expects to eventually remove up to 3,200 shuttle trips from the central terminal area every day.
In an Aug. 11 letter filed with the state’s Employment Development Department, Desne James, an executive with LAZ for West Coast airports, wrote that the 247 worker layoffs would be permanent due to the loss of three parking contracts at the international airport.
“The cessation of a customer contract will require LAZ to implement a reduction in force concerning its operations at Los Angeles International Airport,” James wrote.
The layoffs are effective Oct. 28 for 139 workers at LAX-it, a centralized pickup area at LAX along Sky Way for taxis and ride-sharing apps like Uber and Lyft, and 58 workers associated with LAX Transportation, which is a network of options to get around LAX with buses and airport shuttles connected with a transit center along 111th Street.
The layoffs also include 50 workers at the LAX Rental Car Center, a massive, 6.4-million-square-foot consolidated facility located at West 98th Street. The rental car center opened earlier this year, bringing 12 major rental car brands under one roof and replacing disparate off-site locations.
The positions affected by the layoffs include mostly shuttle drivers and customer service representatives, called “ambassadors.”
Santos Castaneda, a business official for Teamsters Local 986 that represents union workers at LAX-it and LAX Transportation, declined to comment on the layoffs.
A representative with Teamsters Local 2010 could not be reached for comment on union workers that it represents at the LAX Car Rental Center.
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John Svendblad, president of LAZ Parking on the West Coast, wrote in a statement issued to SCNG that his company has provided transportation services at LAX since 2019, tailored to operations since before plans to build SkyLink began.
“As SkyLink prepares to open, our operational needs at LAX are changing. To support this transition, we updated our contract with LAWA (Los Angeles World Airports),” Svendblad said. “As a result, we issued a WARN notice to a group of LAZ employees affected by the change, in coordination with Teamsters Local 986 and all relevant government agencies.”
The EDD filing was made as part of the federal Worker Adjustment and Retraining Notification Act — commonly referred to as WARN, which are required when an employer lays off more than 50 employees.
LAWA is the city of Los Angeles department that owns and operates LAX and the Van Nuys general aviation airport.
While the job losses are attributed to cancellation of parking contracts, Svendblad pointed out that it may rehire several of the workers. This is because LAZ has more than 1,350 jobs open nationwide, with nearly 200 in L.A. County.
“This isn’t a net reduction in jobs,” he said.
An LAX spokeswoman said that more than 400 jobs will need to be filled to support the transition to SkyLink and other transportation operations at the airport. These positions include airport guides, security officers, police officers, traffic management personnel, administrators, guest service guides and transportation workers.
A year ago, LAZ Parking won a five-year transportation services contract tailored to an airport served by SkyLink. Many of its employees currently working under the expiring contracts will likely pursue opportunities under the new agreement, the spokeswoman said.
LAZ Parking is one of the largest parking facility management companies in the United States.
Founded in 1981, the Hartford, Connecticut-based LAZ manages over 2.1 million parking spaces at 5,700 locations in the U.S. It has more than 22,000 employees and reports more than $3 billion in annual managed revenues.
In May, LAZ Parking signed a $19.1 million contract with Laguna Beach to operate its transit services.
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