News Summary
Several companies and nonprofits in Texas are planning significant layoffs this fall due to economic challenges, including funding cuts and contract cancellations. Notable entities affected include TechWerks LLC, which will eliminate 87 positions, and Promises Behavioral Health, with plans to terminate 58 workers. The statewide trend indicates nearly 1,900 layoffs, affecting diverse sectors including tech and healthcare. Economic downturns and inflation are pushing companies to make difficult workforce reductions to maintain profitability.
Texas companies are facing significant job cuts this Fall, as multiple firms and nonprofits have issued Worker Adjustment and Retraining Notification (WARN) notices signaling impending layoffs. These decisions are driven by various economic challenges, including dwindling contracts and funding cuts.
Among the affected entities, TechWerks LLC based in San Antonio is set to eliminate 87 positions by September 15, following the cancellation of its contract with Peraton, which served the Defense Health Agency’s Global Service Center. TechWerks cited “unforeseeable business circumstances” as the reason for this layoff, but has indicated that Peraton may offer jobs to most of the impacted employees.
In addition, Promises Behavioral Health plans to terminate 58 workers due to the closure of its Wimberley, Hays County location on October 17. The organization has also ceased operations at a facility in Florida, resulting in an additional 64 job losses. Meanwhile, the University of Texas Health Science Center at Houston is undergoing layoffs that will affect around 0.5% of its workforce, which totals more than 11,000 employees. Although the exact number of layoffs has not been specified, the institution is implementing cost-containment measures amid financial difficulties. The hiring freeze at UTHealth has further extended to non-revenue producing positions and faculty travel.
The nationwide trend of layoffs has escalated in 2025, particularly within the tech industry, with over 89,000 job cuts reported recently. Federal funding cuts and proposed budget reductions from the Trump administration have caused additional strain on health institutions, leading to layoffs and heightened budget constraints. Earlier in the year, Baylor College of Medicine reported the layoff of 122 employees due to the loss of federal funding. The nonprofit sector in Texas is not exempt from these developments, anticipating nearly 1,900 layoffs statewide.
Southwest Key Programs has indicated that it may eliminate 1,200 to 1,300 jobs as federal contracts for shelters wind down, creating a substantial impact on the Houston job market. Economic downturns, fueled by rising inflation and shifting consumer demands, have compelled companies to make these difficult decisions in an effort to boost profits amidst financial pressures. Notable instances of layoffs also include JCPenney, which will lay off nearly 300 employees due to the closure of its Alliance Supply Chain facility in Haslet. This layoff will happen in two phases, with 42 employees being let go between August 1-14 and an additional 254 between November 1-14. JCPenney has confirmed that all affected employees have been notified and will receive transition resources including severance and benefits.
Key Layoff Details in Texas
| Company/Organization | Position Cuts | Effective Date |
|---|---|---|
| TechWerks LLC | 87 | September 15 |
| Promises Behavioral Health | 58 | October 17 |
| UTHealth Houston | Dozens | Ongoing |
| Southwest Key Programs | 1,200 – 1,300 | Ongoing |
| JCPenney | 294 (total) | August – November |
Timeline of Events
| Date | Event | Status |
|---|---|---|
| August 1 – 14 | JCPenney Layoffs Begin | Ongoing |
| September 15 | TechWerks Layoffs | Upcoming |
| October 17 | Promises Behavioral Health Layoffs | Upcoming |
| November 1 – 14 | JCPenney Remaining Layoffs | Upcoming |
What are WARN notices?
WARN (Worker Adjustment and Retraining Notification) notices are required by law for companies with more than 100 employees to inform workers in advance of significant layoffs or plant closures, allowing employees time to prepare for job loss.
Why are layoffs happening in Texas?
Layoffs in Texas are primarily due to economic challenges like contract cancellations, funding cuts, inflation, and changes in consumer demands which have pressured companies to reduce their workforce.
How can affected workers receive support during layoffs?
Affected workers can often receive support from their employers in the form of severance packages, benefits continuation, and resources for job placement services.
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Additional Resources
- Texas Companies Face Job Cuts – Chron
- Wikipedia: Economic Impact of COVID-19
- UPS Closing Operations – FreightWaves
- Google Search: Impact of Federal Funding Cuts 2025
- JCPenney Layoffs – USA Today
- Google Scholar: Technology Layoffs
- Texas Companies Layoffs – Newsweek
- Encyclopedia Britannica: Job Market Trends 2025
- Texas Nonprofits Layoffs – Texas Border Business
- Google News: Texas Job Cuts 2025
Author: STAFF HERE SAN ANTONIO WRITER
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