FGMC Paying Severance To Ex-Employees

Four days after laying off 471 employees at its Plano, Texas, offices, First Guaranty Mortgage Corp. notified the affected workers that it will pay at least one week of severance to those who are eligible.

In an email sent Tuesday at 11:19 p.m. CDT by FGMC’s Human Resources Department and addressed “Dear recipient,” the company states that, beginning on Wednesday, “former FGMC employees who are eligible will receive severance equal to one week’s pay for every full year of service to the Company.” 

The email continues, “If an individual was employed for less than a year, the individual will receive one week’s pay. This payment will be delivered via direct deposit over the next few business days.”

Former employees told NMP that Friday’s mass layoff occurred at the end of a 10-minute virtual meeting held midday via Microsoft Teams, and that more than 480 staff members participated. The company reported to state labor officials that it was laying off 428 workers.

Friday's meeting was conducted by CEO Aaron Samples, the former employees said, adding that he did not offer severance at that time, but said medical and dental benefits would be extended until only the end of the month — six days later.

The laid-off employees did receive a lump-sum payment of their remaining paid time off, and in a statement to NMP the company said it had also paid “commissions that had come due.”

Tuesday’s late-night email, which is unsigned, opened with a sympathetic tone.

“We know that the past few days have been extremely difficult,” it begins. “Please understand, while we wish the situation was different, we have been working to support your transition during this challenging time.”

It concludes by stating, “Once again, on behalf of the entire team, we want to thank you for your service to the Company.”