Yesterday I received a message from a tipster (send in your tips here) that said:
Due to the lawsuit and actions taken by the suit against TCA they on 3-13 completed mass layoff of over 50% over their workforce, down sizing mainly the new accounts departments. Many feel this may only be the first cut.
And today I learned an Arizona publication is reporting:
Take Charge America is laying off 83 people, roughly one-quarter of its staff, in response to a gradually improving economy that has slowed business for the non-profit credit-counseling firm.
The organization, headquartered in north Phoenix, also is embroiled in a dispute with the Internal Revenue Service over its non-profit status. That battle of more than seven years, now in federal Tax Court, apparently has slowed the flow of referrals of debt-laden individuals made by banks and other entities, said Mike Sullivan, Take Charge’s director of education. If the entity loses its non-profit status, that will require major shifts in its business model, he said. – Source
For more information on the suit discussed see Details on Take Charge America Suit Against Internal Revenue Service.
Update 3-14-2012 5:15 PM
Michael Sullivan from Take Charge just sent me the following statement:
“Take Charge America did eliminate 85 position, or about 25% of our total staff this week due to business conditions. We have observed a slowing over the last few months and hoped that it was a business cycle and would turn around as it normally does.
Unfortunately, it has not turned around and our litigation with the IRS over our audit, currently in its eighth year, has resulted in some of partners limiting or stopping referrals that represented a significant part of our business.
Although we are hopeful that a court decision will soon reaffirm our tax exempt status and put us back on a growth path we could not fail to address the fact that we were overstaffed. We were very sad to lose so many wonderful employees who had done so much good for so many consumers. Our cuts were across the board and included new and open accounts, training, quality assurance and other support groups.
We continue to be committed to serving all our current clients and any new clients who might want our help and we are still well staffed with over 200 employees ready to assist clients.”
Thanks to Michael for the statement.
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