Teradata will move its Dayton-area headquarters functions to San Diego, moving hundreds of high-paying local jobs, the company said in an filing with the government Wednesday.
“As the company evaluated its footprint and identified ways to make its decision-making, systems and processes more efficient, it determined that closing its Dayton office and locating its headquarters in San Diego better positions Teradata for the long-term,” Teradata said in an SEC filing.
The Teradata SEC filing did not address employee numbers. But in a notice sent to the state of Ohio, as required by the WARN (Worker Adjustment and Retraining Notice) Act, Teradata said the move will impact 267 of the 306 employees working at the company's Miami Twp. offices.
"Teradata is offering 39 employees currently working at the Dayton facility the opportunity to continue working in this area; their salary and benefits will not change due to this action," Teradata said in the letter to the state. "After the Dayton facility is closed they will be exclusively virtual and will not be working from this location."
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Teradata will offer 202 Dayton-area employees a chance to move to other company locations in the U.S., the company said. "These employees have an opportunity to review and decide whether to accept Teradata’s relocation offer," the letter said.
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In a statement, a company spokeswoman said San Diego “has been core to Teradata for over 20 years, and the majority of its operations have been there since the 1990s. As the company continues to grow, officially transitioning to San Diego will allow Teradata to operate with more speed and agility to better serve its customers.
“We expect the move to San Diego to become effective by the end of 2018, after which we will be closing the Dayton office," the company's statement said. "This was a decision that we did not take lightly – we recognize the impact it can have on the surrounding community. Over the coming months, we will be working closely with all affected employees and other important stakeholders to ensure a smooth transition as we continue to serve our customers."
In a release, State Rep. Niraj Antani, R-Miami Twp., said he has written to Gov. John Kasich and John Minor, chief executive of JobsOhio, “to urge them to also contact Victor Lund to see what they can do to keep Teradata in Miami Township.”
Lund is Teradata’s CEO.
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“On February 12, I had convened a meeting with JobsOhio staff and their local regional partners to specifically discuss what we can do regarding local concerns about Teradata relocating. I will continue to do whatever I can to keep Teradata in Miami Township,” Antani added.
Bruce Langos, a former Teradata executive who now works for the Montgomery County Sheriff’s Office, said in an interview early in the day Wednesday that he had been told by contacts within Teradata that company will be drastically reducing its Dayton-area employment.
Doug Barry, a Miami Twp. trustee, confirmed that he has heard the same rumblings, but he said the company had not contacted the township directly about its plans.
Barry said Teradata had been quiet, particularly after Langos left the company in early 2016.
“We have tried to contact Teradata over the last couple of years,” Barry said. He said the company had not responded to those overtures.
“We’re waiting the hear the announcement just like everyone else is,” Barry said.
Jeff Hoagland, president and CEO of the Dayton Development Coalition, expressed disappointment in the news.
“Whenever a company has facilities in the Dayton region and other locations, we know there is a risk for consolidations,” Hoagland said in a statement “That’s why the (coalition) and its state and local economic development partners consistently reach out to companies, including Teradata, to learn about their needs and provide support.
“We understand this was a business decision for Teradata,” Hoagland added. “Even though we’ve had multiple conversations with the company, they gave no indication they would leave, nor did they ask for our help. Many of Teradata’s senior management has ties to the West Coast, as well.”
The decision is a bleak echo of NCR Corp.’s own quiet plans to leave the Dayton area nearly a decade ago, to move to the Atlanta area.
Teradata was a 2007 spinoff of NCR.
Teradata said in its filing Wednesday with the SEC that its move to San Diego will incur costs related to “one-time employee separation benefits, transition support, and other exit-related costs.
“As the specific actions in connection with the initiatives for this plan have not been finalized, the company is currently unable to make a good faith estimate of the total amount or range of amounts to be incurred in connection with the plan, nor provide an estimate of the amount or range of amounts of any future cash expenditures related to these actions,” Teradata added in the filing.
Last month, Teradata reported a net loss of about $7 million in the first quarter of 2018. The big data company reported revenue of $506 million for the quarter ended March 31, 2018.
Business reporter Thomas Gnau broke this story. Get his latest updates on Twitter at @ThomasGnau