Panama City, FL – Hundreds of jobs are set to be cut across the Florida Panhandle as a private corrections contractor moves to end operations at two facilities, impacting more than 400 workers.
According to filings submitted this week, Management & Training Corporation (MTC) announced two significant layoffs affecting a combined 420 employees in Bay and Jackson counties. The layoffs are scheduled to take effect June 30, 2026, marking a major workforce shift in the region.
The largest portion of the cuts will occur in Graceville, where 259 employees at a facility located on Ezell Road will be impacted. In Panama City, 161 workers at the Bay Correctional Facility on Bay Line Drive are expected to lose their jobs.
Company documents indicate the layoffs are tied to the end of MTC’s contract to operate the Bay Correctional Facility. The company stated that its agreement will cease at the end of June, and another operator is expected to take over operations. MTC noted in its filing that it understands many employees could be retained under new management, though no guarantees were provided.
The notice also states that the layoffs are expected to be permanent for affected MTC employees, with workers not granted bumping rights, meaning they cannot displace other employees based on seniority.
Local officials and workforce agencies have been notified as part of the WARN Act requirements, which mandate advance notice for large-scale layoffs. The move is likely to have a ripple effect on the local economy, particularly in smaller communities like Graceville, where correctional facilities serve as key employers.
State and local agencies are expected to coordinate rapid response efforts to assist displaced workers with job placement and retraining services in the coming weeks.
