PESP updates Private Equity Employer Tracker

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 13.3 million people in the United States alone, up from the 2020 estimate of 11.7 million, a 12% increase. The largest number of workers employed by private equity-owned companies are concentrated in low-wage industries such as food service, retail, home 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.

A notable addition to the tracker is Sycamore Partners-owned Walgreens. In August, Sycamore announced it finalized its $22+ billion acquisition of Walgreens, immediately unveiling plans to split the company into five standalone businesses: Walgreens, The Boots Group, Shields Health Solutions, CareCentrix, and VillageMD. PESP warned that this move raises serious concerns for patients, workers, and communities across the United States. Walgreens operates thousands of U.S. pharmacies and employs more than 220,000 people domestically, serving millions of patients daily.

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.

In 2023, 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, Industry, and Locations Active. 

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.