Authority Brands to cut 125 positions in restructuring

Home services franchisor Authority Brands is restructuring its workforce.

As part of the change, roughly 125 existing positions will be “phased out” over the next three to 12 months, while more than 100 newly created positions have been posted, a company spokesperson told Homepros in a statement. 

The backdrop: Authority Brands is backed by private equity firm Apax Partners and owns 15 home service franchise brands, including One Hour Heating & Air Conditioning and Benjamin Franklin Plumbing.

• Altogether, the brands operate more than 2,700 locations across the U.S. and generate over $2 billion in annual sales.

What’s happening: The restructuring comes as the company invests in “new capabilities across technology, marketing, training, and operations to help owners generate more demand to attract more customers, convert more opportunities into new business, and build lasting customer relationships that drive repeat business,” according to the spokesperson.

• “Delivering on that strategy also requires us to rethink how we’re organized so we can bring more of our expertise and resources to the franchise owners we serve,” the spokesperson said.

The spokesperson said the cuts affect Authority Brands employees — not staff at individual franchise locations — across different business units, departments, and functions, but didn’t specify which. 

Of note: In recent days, social media posts about the job cuts have gained traction, including one claiming that Authority Brands was laying off more than 300 employees. The company said that figure is inaccurate, noting that roughly 125 positions will be phased out.

• Authority Brands has approximately 1,300 corporate employees, according to the spokesperson. 

Zoom out: The restructuring also comes months after Authority Brands announced in June that it will move its headquarters from Maryland to Georgia, which it said would bring 390 new jobs and a $13 million investment to the region over the next several years.

Looking ahead: The newly created positions will be offered internally first, according to the spokesperson. “Our goal is to fill as many of these roles as possible with people who already know our business.”

This story may be updated with additional reporting.