Roughly 900 employees of a private prison contractor in Texas are facing layoffs this summer as the state prepares to take over seven correctional facilities previously run by Management and Training Corporation, according to state filings.
The layoffs were disclosed in filings with the Texas Workforce Commission and posted to the WARN (Worker Adjustment and Retraining Notification) database on June 26. The WARN Act requires large employers to provide at least 60 days’ notice before mass layoffs or facility closures.
The seven facilities affected span the state, from the Bradshaw State Jail in Henderson, where 172 layoffs are expected, to the Willacy County State Jail in Raymondville with 166 layoffs. Other impacted sites include the Lindsey State Jail (117 layoffs), the Kyle Correctional Center (98), the Gregory S. Coleman Unit (135), the Bridgeport Correctional Facility (103), and the Billy Moore Correctional Center (109).
Each layoff is scheduled to take effect by August 31, 2025.
The Texas Department of Criminal Justice (TDCJ) confirmed to The Dallas Express that it will be assuming operations at all seven facilities following funding authorization during the current legislative session.
“This legislative session, the funding was provided to TDCJ to assume operations of the Bradshaw, Bridgeport, Coleman, Kyle, Linsey, Moore, and Willacy Units. This means these facilities will no longer be privately operated,” Hannah Haney, deputy director of Communications for TDCJ, shared in a statement.
TDCJ also confirmed it has been actively working to transition existing Management and Training Corporation (MTC) employees to state employment.
“TDCJ has informed all MTC employees about the transition and encouraged them to apply for state employment. Recruiters are visiting the facilities and collecting applications from the majority of current employees,” Haney said. “Additionally, TDCJ is conducting two virtual transition seminars for MTC staff.”
While the layoffs are legally required to be reported under the WARN Act, receipt of a WARN notice does not necessarily mean a layoff will occur. Economic conditions or policy changes — like this transition — can result in job retention or reassignment.
Under the WARN Act, passed by Congress in 1988, employers with 100 or more employees must provide 60 days’ notice before plant closings or mass layoffs. The goal is to give workers and their families time to prepare for job loss, seek new employment, and explore retraining opportunities. Employers who violate the act may be required to provide back pay and benefits, but the WARN database does not indicate that MTC violated the law.
All affected MTC employees were initially vetted and approved by TDCJ, which oversees hiring standards at privately operated facilities under its purview, according to the TDCJ spokeswoman. According to the department spokeswoman, current employees will undergo a re-evaluation process to check for “any new disqualifying issues that may have arisen since their initial approval.”
“This transition is similar to one that took place after the last legislative session when TDCJ began operating the Bell, Diboll, and Estes Units. These units saw a large increase in their staffing levels,” Haney said. “Additionally, employees become eligible for state benefits and salaries.”
MTC, based in Centerville, Utah, operates correctional, educational, and medical facilities across the U.S., U.K., and Australia. According to its website, the company’s mission is “giving people hope, skills, and opportunities for a better life.” The website claims that MTC employs over 8,000 staff worldwide.
The firm also describes its core values as “Integrity, Equity, Excellence, Empathy, and Innovation,” and states it aims to be a “worldwide leader in social impact.” MTC’s Texas operations have included the seven correctional facilities now being transitioned to public control.
Private prison operations in Texas have steadily declined over the past decade. Lawmakers and corrections officials say cost savings from privatization have diminished while staffing shortages and oversight concerns have increased. State budget documents indicate that maintaining private contracts would have required a $65.8 million funding increase over the next biennium, MYSA reported.