On March 12, 2025, Gate Gourmet delivered troubling news to hundreds of its employees at San Francisco International Airport (SFO).
The airline catering giant announced that it would be laying off 835 workers, making it the largest mass layoff in California so far this year.
The company cited "the recent loss of a customer account" as the primary reason for this drastic workforce reduction.
A sudden blow to SFO airport workers
As reported by KRON4, a local news outlet based in San Francisco, the layoffs will primarily impact food preparers, dishroom attendants, and equipment setup personnel.
Many of these workers are represented by the International Brotherhood of Teamsters and Unite Here Local 2 unions.
The layoffs, which are permanent according to the company, are scheduled to take effect on May 13. The company explained to California's Employment Development Department through a supporting letter that the lost customer account would severely affect their business operations, thus requiring workforce reductions and worksite relocation.
Gate Gourmet did not disclose the specific account but confirmed to local media SFGate that United Airlines' new catering strategy required operational changes.
United Airlines has historically been Gate Gourmet's largest contract at SFO, suggesting a significant reshuffling of airline catering services at the airport.
It is worth noting that these issues related to catering services, which are often taken for granted, are very important. Suffice it to say that in July 2022, Gate Gourmet catering workers at Vancouver International Airport voted to strike over low wages and inadequate benefits, threatening to disrupt in-flight catering services for dozens of airlines.
Possible legal implications of the layoffs
The approach Gate Gourmet used to conduct these staff reductions raises concerns about their compliance with federal employment law regulations.
The Worker Adjustment and Retraining Notification (WARN) Act of 1988 requires businesses with 100 or more staff members to notify employees about major plant closures or layoffs at least 60 days in advance.
The notice gives employees and their families the opportunity to prepare for new employment while enrolling in training programs.
Gate Gourmet issued its WARN notice on March 12, 2025, notifying the California Employment Development Department of its plan to conduct a mass layoff at its SFO facility effective May 13, which appears to satisfy the 60-day notification requirement.
However, Chicago-based leading class action law firm Strauss Borrelli PLLC has announced an investigation into whether Gate Gourmet fully complied with all WARN Act provisions.
According to the law firm, employees affected by WARN Act violations may be entitled to 60 days of severance pay and benefits.
The firm is investigating whether Gate Gourmet followed all aspects of the WARN Act rules, including providing clear notices to all affected parties.
Employers who do not follow these rules, either by giving notice too late or providing unclear notices, may have to pay employees back pay and benefits for the time they were in violation.
This legal investigation adds another layer of complexity to an already challenging situation for the hundreds of workers affected by the layoffs.
The silver lining with LSG Sky Chefs
Despite the grim initial outlook, there appears to be significant hope for the laid-off workers. According to reports in the San Francisco Chronicle and statements from union representatives, a competing food vendor at the airport is expected to rehire most of the affected workers.
Ted Waechter, a spokesperson for Unite Here Local 2, which represents over 15,000 hospitality workers, including the 835 Gate Gourmet workers, confirmed to local media that most of the workers will be rehired at LSG Sky Chefs, a former subsidiary of the Lufthansa Group, and a competing catering business in SFO.
In April 2023, Lufthansa sold its remaining LSG Group catering business to AURELIUS, aiming to refocus on its core airline operations.
This development suggests that, rather than a true reduction in the workforce, the situation represents more of a transfer of employees from one catering company to another.
Kimberly Plaskett, spokesperson for LSG Sky Chefs, confirmed to local media SFGate in an email that the company is planning on "hiring personnel that includes former employees of Gate Gourmet."
This statement aligns with SFO's worker retention policy, which an airport spokesperson cited as the reason most workers will be rehired.
However, LSG Sky Chefs is no stranger to layoffs. Last year, the German catering company based in Neu-Isenburg (near Frankfurt, Germany) announced in August that it would lay off 100 workers in Arlington, Virginia, and terminate their employment in September under the WARN Act.
SFO's worker retention policy and government assistance
A significant factor in protecting the laid-off workers is San Francisco International Airport's worker retention policy. This policy is designed to ensure continuity of service and protect workers' jobs when contracts change hands at the airport.
The SFO policy requires that when a service contract changes from one company to another, the new contractor must hire employees from the previous contractor for a transitional period.
This policy serves multiple purposes: it ensures that experienced workers familiar with the airport's operations remain in place, provides job security for airport workers during contract transitions, and maintains service quality for airlines and passengers.
The policy achieves its purpose by requiring LSG Sky Chefs to bring back most of the workers Gate Gourmet dismissed and establishes an essential safety measure for employees whose jobs are at risk because they could otherwise experience unemployment and financial difficulties.
The Employment Development Department (EDD) in California also provides unemployment insurance benefits to qualified workers who lost their jobs without personal responsibility.
The benefits function as temporary monetary support which helps jobseekers during their search for new employment. Through its workforce services division, the EDD also provides job search assistance together with career counseling and training opportunity information.
Furthermore, the Workforce Innovation and Opportunity Act (WIOA), as a federal act, creates funding opportunities for workplace training courses that enable workers to acquire new competencies that boost their employability levels.
Occupational training programs have specific benefits for hospitality workers who wish to move towards different roles in their industry or begin developing new professional directions.
Looking ahead at the future of airline catering at SFO
The airline industry focuses on cost control and service uniqueness, which leads airlines to periodically review their catering partnerships.
Workers transferring between these two catering companies will encounter various challenges and opportunities as they make their transition.
The rehiring agreements address short-term job loss concerns, yet workers may need to adapt to different company cultures, operational procedures, and performance standards.
The expanding air traffic at SFO indicates skilled catering workers will continue to find strong employment prospects throughout the foreseeable future.
San Francisco International Airport functions as an essential international airport and United Airlines hub that maintains continuous flight operations requiring food service.
Moreover, as airlines compete for premium passengers, there is increasing emphasis on high-quality inflight dining, particularly in business and first-class cabins.
Specialized culinary workers who demonstrate expertise in airline catering will find new prospects in this evolving market.
The initial announcement of 835 Gate Gourmet layoffs seemed to damage San Francisco's airport workforce, but the fuller picture indicates positive prospects.
The worker retention policy at SFO, together with union-negotiated agreements and LSG Sky Chefs' airport expansion, allows most affected workers to keep their jobs, albeit with a different employer.
