Mammoth Tech employees express disappointment | Local News
Seeking answers about a recent office closure, former Mammoth Tech employees — better known as credit adjusters — attended the Defiance town council meeting on Tuesday night.
But officials had little to offer in the face of the company’s decision to close its doors in Defiance and across the country. The closure was announced to employees last week via email, abruptly ending operations at its headquarters on Boulevard de Genève in Defiance.
Also on Tuesday, the council took action on four legislative items and held a public hearing (see related article).
Local resident Rachel Youngker, 13469 Fullmer Road, spoke on behalf of former Mammoth Tech employees, asking if city officials could provide further information about the closure.
She said around 60 employees were stationed in the Geneva Boulevard building while the approximately 400 other Mammoth Tech workers were working remotely when they were notified by email that their employment was ending.
Mayor Mike McCann had no additional information for the employees, but offered his sympathies.
“Let me say on behalf of everyone around this table, we feel bad for what happened,” he said. “This is a terrible event. As a city, we had high expectations for CAI/Mammoth Tech to do great things in our community, and it certainly started that way. … Again, we’re really, really , really sorry.”
The Defiance site employed 220 people when it opened in 2020, according to company officials, following the construction of the new headquarters on Geneva Boulevard. The company also has several offices across the country and employed 510 people in 2020 in those locations, according to a company official at the time.
The construction of the Defiance Headquarters dates back a few years when the City of Defiance deeded approximately 24 acres on Latchaw Drive to the CIC of Defiance County for corporate expansion. The land was then made available to the company for its headquarters project.
City chief financial officer John Lehner could offer no more than McCann, noting that “we knew the business was in trouble” and referred to the company’s struggles to deal with the loss of student loan debt. A national moratorium had been imposed on this debt during the coronavirus situation.
“We didn’t realize there were still 400 employees working remotely,” Lehner said. “Quite honestly, we thought the numbers had already been reduced based on the cars in the parking lot. Otherwise, the city was hardly involved in what happened.
“The city provided the company with economic development incentives to construct the building and construct the building where it is,” Lehner added. “The incentives include things like a cash incentive for the number of jobs created, but when the jobs disappear, the incentives disappear, so it was pretty much null and void. I think we provided the ground for them for free. I believe it was land that the city had owned for a long time, and to get the building built in the city, we provided it for free.”
Lehner also explained that the city and the company had entered into a tax increment financing agreement in which the city government was installing certain infrastructure. The company’s new property taxes were then redirected to pay for infrastructure.
Additionally, he noted that the city lost the services of Mammoth Tech because it was using the company to collect debts on delinquent accounts.
General Counsel Sean O’Donnell told ex-workers that the Defiance County CIC office helped some employees find new jobs