O’Reilly Auto Parts cuts IT jobs to align with future tech needs
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- O’Reilly Auto Parts laid off under 11% of its IT staff as part of a modernization effort.
- The Springfield, Missouri-based company says the layoffs aren’t related to cost-cutting but rather to realigning skills for future projects.
- Affected employees received severance packages and will be considered for other open positions.
Staff within the O’Reilly Auto Parts information technology department have been laid off.
Social media posts made by current and former O’Reilly information technology staff estimated that the layoffs affected more than 100 employees.
In an emailed statement April 24, Public Relations Director Sonya Kullmann Cox said less than 11% of the IT team was laid off in order to “modernize IT solutions and structures” and align skills of the employees with the work ahead.
“We recognize that the impact to the individuals affected and their families is significant, and we appreciate their past service to the company,” Kullman Cox said in the email.
She said most of the affected employees worked outside of the Springfield, Missouri, metro area. The employees were given severance based on their position and years of service, as well as extended health care coverage. Kullman Cox said if interested, they will be considered for other positions within the company or will be assisted with outplacement services.
“This was not an effort to cut the size of our team or reduce expenses,” she said. “O’Reilly will be recruiting individuals who have specific IT skills and experience needed for the work ahead.”
According to an April 23 news release, the company reported steady growth during the first quarter of the year. While expenses increased and net income decreased by 8% and 2%, respectively, sales and gross profit both increased by 4% compared to the same period a year ago.
The O’Reilly careers website showed 23 open positions under the IT category as of 11:30 a.m. April 29.
In September, the U.S. House Select Committee on the Chinese Communist Party sent a letter to U.S. auto parts firms, including O’Reilly, with concerns that the companies were evading tariffs by transshipping products made in China, by Qingdao Sunsong, through Thailand. Through the letter, the committee warned auto parts retailers that knowingly purchasing unlawfully transshipped products could face serious consequences and requested answers to several questions regarding the companies’ dealings with the China-based manufacturer.
Marta Mieze covers local government at the News-Leader. Have feedback, tips, or story ideas? Contact her at [email protected].
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