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🗞️ DOL Awards $551,195 to Support Workers Affected by L.S. Starrett Company Layoffs

The U.S. Department of Labor awarded $551,195 through a National Dislocated Worker Grant to Massachusetts to assist 78 manufacturing workers laid off from The L.S. Starrett Company in Athol on June 30, 2025.

onthelaborfront

02 Jan 2026 — 3 min read

On January 2, 2026, the U.S. Department of Labor's Employment and Training Administration announced a National Dislocated Worker Grant totaling $551,195 to the Massachusetts Executive Office of Labor and Workforce Development. The grant provides retraining and skills development services for workers affected by layoffs at The L.S. Starrett Company, a 146-year-old precision measuring tool manufacturer headquartered in Athol, Massachusetts.

The layoffs occurred on June 30, 2025, affecting 78 workers at the company's Athol headquarters and an additional 101 employees across 10 other global business locations, totaling 179 job losses worldwide. The affected positions were primarily in indirect and administrative services departments, including IT, sales, finance, human resources, quality assurance, maintenance, and engineering. According to company CEO Roger Amrol, severance packages were offered to full-time affected employees, along with access to MassHire career services.

The L.S. Starrett Company, founded in 1880 by inventor Laroy Sunderland Starrett, has been one of Athol's largest employers and a cornerstone of the town's economy, earning the community the nickname "Tool Town." The company manufactures more than 5,000 variations of precision tools, gauges, measuring instruments, and saw blades for industrial, professional, and consumer markets worldwide. In March 2024, the company was acquired by private equity firm MiddleGround Capital and completed its transition to a privately held company in June 2024.

The National Dislocated Worker Grant is authorized under the Workforce Innovation and Opportunity Act of 2014 and is designed to respond to large, unexpected layoff events that exceed available local workforce resources. The funding will allow the Massachusetts Executive Office of Labor and Workforce Development to provide employment and training services for dislocated workers seeking assistance in Franklin and Worcester counties. Massachusetts operates a statewide vouchering component, meaning eligible employees from the affected company can receive services from any One-Stop Career Center in the state, regardless of their residence location.

Local officials expressed concern about the layoffs' impact on the community. Athol Town Manager Shaun Suhoski noted that the workforce reduction at "a legacy manufacturer and benefactor in the community" was "unsettling news," while acknowledging the company's continued presence with several hundred employees working at the downtown Athol campus. State representatives Susannah Whipps and Jo Comerford coordinated with MassHire to hold informational sessions for affected workers on unemployment benefits, health insurance options, and job seeker services.

The layoffs reflect broader challenges facing the company and the region. Employee reviews on job sites indicate concerns about the private equity acquisition, with some workers characterizing the company as "a sinking ship" and noting that MiddleGround Capital is "stripping most departments of people/experience." The Athol area has historically struggled with economic transitions since the mid-20th century, when highway construction diverted traffic and commerce to other parts of Massachusetts, contributing to long-term economic decline.

Key Points

Grant Amount: $551,195 awarded through National Dislocated Worker Grant program
Affected Workers: 78 employees at Athol headquarters; 179 total globally
Layoff Date: June 30, 2025
Affected Positions: Indirect and administrative services (IT, sales, finance, HR, quality assurance, maintenance, engineering)
Company Background: 146-year-old precision tool manufacturer founded in 1880; acquired by MiddleGround Capital in 2024
Geographic Impact: Northern Massachusetts rural labor market, particularly Franklin and Worcester counties
Services Provided: Retraining, skills development, employment assistance through Massachusetts Executive Office of Labor and Workforce Development
Service Delivery: Statewide vouchering allows workers to access services at any Massachusetts One-Stop Career Center
Legal Framework: Workforce Innovation and Opportunity Act of 2014, Section 170
Community Significance: L.S. Starrett is one of Athol's largest employers in a town nicknamed "Tool Town"