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American Home Shield lays off 130 in LaGrange

About 130 people became jobless after home-warranty company American Home Shield eliminated positions based in LaGrange, an AHS spokesperson has confirmed.

“Last week, we shared information with associates about the redefinition of the telesales function within our business. Although this brought especially hard news to those affected, it was a necessary strategic transition for the continued growth and long-term success of the company,” the spokesperson said in an emailed statement. “It was a very difficult decision to conduct job eliminations that included about 130 employees in LaGrange.”

The spokesperson denied that the jobs were shipped overseas. They added that AHS, which has an office on Old Mill Road in LaGrange, “is a grateful member of the LaGrange community and we are supporting affected associates through this transition with severance, outplacement assistance and the chance to apply to internal opportunities.”

The LaGrange Daily News sought to speak with former employees about how the layoffs have affected them. Two former AHS employees who wished to remain anonymous, however, said that severance packages and career transition services are contingent on employees not saying anything negative about the company.

One former employee provided a copy of their separation agreement, which included a clause that the employee “will refrain from taking actions or making statements, written or oral, which criticize, disparage, or defame the business, goodwill or reputation of American Home Shield.”

The agreement also includes conditions that former employees will not become employed with competitors of AHS for a period 12 months, and that former employees will not sue the company.

AHS recently cut 35 jobs in Carroll, Iowa, according to the Carroll Times Herald. Its parent company, Frontdoor, Inc., also just laid off 60 people in Memphis, according to The Commercial Appeal, a Memphis newspaper.

Frontdoor, which is based in Memphis, has had reduced quarterly profits due to the pandemic, according to The Commerical Appeal.