A major Wichita Falls employer has announced its closure. WDS Global, a Xerox company, will force 257 employees out of a job by the end of August.
Meanwhile, Xerox officials have given little explanation on why the business is shutting down.
"Unfortunately, we have made the difficult but necessary decision to close the Wichita Falls facility because it is no longer sustainable," said Coco Salazar, Xerox Corporate Communications Manager. "We realize this affects individuals, and every effort is being made to ensure that all employees are treated fairly."
All of those employees losing their jobs will have the opportunity to apply for home-based company care positions.
"We expect to rehire 100 of the affected individuals for other opportunities at Xerox," said Salazar.
The company was brought to Wichita Falls back in February 2010 after the Wichita Falls Chamber of Commerce presented a $3.6 million incentive package to Wichita Falls City Council. The package provided $1.2 million in equipment and facility improvements and $2.4 million for cash for jobs.
"Economic development is just one of those things, you take a risk no matter who the company is," said Chamber of Commerce CEO Henry Florsheim.
Even though the company is closing its doors for good, chamber officials said the investment was well worth it. Over the companies five year stay in Wichita Falls they put back $125 million into the local economy, according to Florsheim.
The money was used from the city's 4A tax fund. A fund set up to strictly provide money for economic development projects. The money spent compared to economic return is 2.2 percent, according to Florsheim.
"We certainly feel for those people that have lost their jobs and Workforce Solutions has a great staff that can take care of them," said Florsheim. "When you have a payoff like that, yeah absolutely it makes sense."
Under the initial terms, the company was supposed to generate 750 jobs. However over the five year period the employment numbers ranged from 250 to 525. As those employment numbers continued to dip, the Chamber of Commerce did not spend all the incentive money.
The city saved $881,100 from the incentive package. That money was put back in 4A tax funds to use on other economic development projects, according to Chamber of Commerce officials.