American Financing Company, a mortgage loan broker with an office in Aurora, announced it plans to lay off almost 200 Denver-area employees by Dec. 23, according to the Colorado Secretary of State's website.
The Nov. 16 announcement came via a Worker Adjustment and Retraining Notification Act (WARN) notice where the company reported it would lay off 194 employees.
The layoffs are due to “unforeseeable business circumstances” causing a reduction in sales according to the WARN notice, which requires large employers to provide a notice to employees 60 days prior to any layoffs with some exceptions, according to the state website. In this case, employees received reduced notices due to the speed and extent of sales declining in the second half of October, according to American Financing. The layoffs represent more than half of the company's workforce. It's located at 3045 S. Parker Road, Aurora.
Former Denver Broncos quarterback Peyton Manning, a Super Bowl winner and NFL Hall of Fame inductee, served as a pitch man for American Financing commercials that aired in metro Denver.
It was not clear to company officials that sales would drop this low until late October, according to its WARN letter, and by early November it was obvious to them November would follow the same trend. The lower-sales trend is expected to continue into 2023, according to the letter.
The separations will occur in two waves, the first of which was on Friday, and another before December 23.
Though the letter didn't mention it, the increasing interest rates from the Fed have hurt the bottom line of many mortgage companies.
American Financing Company officials did not respond for comment as of 5 p.m. Monday.
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