Updated 10:22 p.m. with additional information; photo added 11:10 p.m.
NORWALK, Conn. – Norwalk Economic Opportunity Now (NEON) has laid off “more than 100” employees, according to a press release from interim CEO Tommie Jackson Wednesday evening.
Jackson announced the layoffs at a meeting held Wednesday at NEON’s Stamford office. A source told NancyOnNorwalk that, while the layoffs were announced in the meeting, employees did not find out who was being laid off until later in the day. Employees had to drive to Stamford for the meeting, a hardship for many struggling to find gas money, the source said.
NEON Board of Directors Chairman Michael Berkoff confirmed Wednesday night that the agency has about 50 people remaining on the payroll.
According to the release, the layoffs were necessitated by the recent loss of several program contracts including, federal Head Start, Connecticut Department of Correction halfway houses and Connecticut Court Supported Services Court Support Services Division Alternatives in the Community.
“This was not a desirable outcome, but without funding it was the only appropriate action to take at this difficult moment,” Jackson in the release. “This decision was made to preserve employee rights and their economic dignity.”
The official layoff notice allows NEON employees who had been placed on furlough status, after paychecks during several pay periods were delayed or missed, to apply for unemployment benefits, the release said.
According to the release, Jackson told employees at the meeting that his number one priority is to “make all employees whole,” by working to collect the funds necessary to pay all wages owed to staff by Dec. 1. Jackson pledged that he would forego his own salary until all employees are paid.
No salary had been set for the interim position as of last weekend.
Jackson declared that his overall goal is to restore the credibility and integrity of the agency, in a process he described as “not being painless,” the release said. In the coming week Jackson will initiate a “thorough and serious review” of NEON’s financial control systems, program services and employee functions, the release said, putting new systems and controls in place to ensure that all funds allocated to NEON are properly spent with comprehensive and transparent documentation, the release said.
While discussions between NEON and Community Development Institute (CDI,) have continued in recent days, a date for the re-opening of Norwalk Head Start and child care programs at Norwalk’s Nathaniel Ely School and Ben Franklin Center has not yet been identified, the release said. CDI was appointed by the federal Administration for Children and Families to administer Norwalk Head Start while NEON’s management of the program is under suspension.
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