Gov & Business

Purple Line Contractors Warn Of Massive Layoffs; Lead Contractor In Trouble With SEC And NYSE

MBS Staff

Several firms involved in the Purple Line light rail project gave notice to the State of Maryland that they could lay off hundreds of workers by late August.

Through the State’s required Work Adjustment and Retraining Notification (WARN), four companies sharing the same address in Prince George’s County filled the notification yesterday, June 24.

The companies and their employee count include Traylor Bros., Inc. (28 workers), Purple Line Transit Constructors, LLC (478 workers), Lane Construction Corporation (125 workers), and Fluor Enterprises, Inc (87 workers). The firms are said to be all located at 6811 Kenilworth Avenue in Riverdale and they would lay off the employees by August 23.

The construction costs have been a point of contention between Maryland government officials and the Purple Line Contractors, putting the 16-mile mass transit line in jeopardy.

Irving, Texas-based Fluor (NYSE: FLR) is the lead contractor on the Purple Line project and has run into financial trouble as of late. The company is under investigation by the SEC because of a massive second quarter loss it posted in 2019 and received notice from the New York Stock Exchange in March that it is not in compliance — due to its failure to file in timely manner — its Annual Report (Form 10-K) for the year ended December 31, 2019 .

The Purple Line is currently under construction and is expected to include 21 stations including 10 in Montgomery County