PESP releases updated database of largest private equity-owned employers in America
Private equity bankruptcies contribute to retail’s greatest loss in employee numbers
August 9, 2024
The Private Equity Stakeholder Project (PESP) has released updated research tracking the largest employers in the United States that are owned by private equity firms. This comprehensive research underscores the significant impact of private equity ownership on the American workforce and highlights the need for better labor standards across these firms.
According to the most recent estimates, private equity firms directly employ 12 million people in the United States alone, with millions more employed globally. The majority of these workers are concentrated in low-wage industries such as food service, retail, healthcare, and security. Private equity firms, focused on growing cash flows at the companies they acquire, often adopt a low-road approach by reducing wages, benefits, and staffing levels. This approach has devastating consequences for millions of workers, their families, and entire communities.
Private equity firms typically hold controlling stakes in their portfolio companies, giving them significant power to impact jobs and working conditions. As ultimate owners, private equity firms should implement minimum labor standards, such as those outlined in the PESP Private Equity Labor Rights Platform, across their portfolios.
Last year, PESP released a groundbreaking database containing information on over 200 private equity-owned companies with 10,000 or more employees. This database allows users to filter and sort data by various columns, including Current Owner and Industry. This year’s update introduces a new searchable field: Locations Active. Texas leads with the highest number of large private equity-backed companies, followed by Florida and California. Outside of the United States, Canada, the United Kingdom, and Germany have the greatest number of private equity-owned companies represented.
The updated data reveals an overall increase in the number of employees at the world’s largest private equity-owned companies. The Professional, Scientific, and Technical Services sector saw the largest employee increase, driven by recent acquisitions like NexTech and Guidehouse. Japan Industrial Partners’ acquisition of Toshiba in September 2023 significantly increased employment numbers for private equity-owned companies in the Manufacturing sector.
Conversely, the Retail & Wholesale Trade sector, while still the second-largest, experienced the greatest loss in employee numbers. Bankruptcies played a significant role in this decline. The bankruptcy of 99 Cents Only Stores resulted in layoffs for 14,000 employees, and Joann’s bankruptcy, under the majority ownership of Leonard Green & Partners, affected 18,000 employees who are no longer under private equity ownership.
PESP’s updated research highlights the critical need for private equity firms to adopt and enforce robust labor standards to protect workers and ensure sustainable employment practices.
For more information or to access the updated database, visit: bit.ly/LargePECompanies.
