Massachusetts receives $551k grant to support workers laid off by L.S. Starrett Co.

The U.S. Department of Labor has awarded $551,195 to Massachusetts to provide employment and training services for workers affected by recent layoffs at The L.S. Starrett Co., a precision tool manufacturer and one of the region’s largest employers.

The funding comes through the department’s National Dislocated Worker Grant program, administered by the Employment and Training Administration. The grant will be managed by the Massachusetts Executive Office of Labor and Workforce Development, which will use the resources to offer retraining and skills development for displaced workers in Franklin and Worcester counties.

The layoffs at Starrett’s Athol headquarters occurred on June 30, 2025, when the company reduced its workforce by 78 employees. An additional 101 positions were cut across Starrett’s other global locations, bringing the total number of affected workers to 179. The affected roles were primarily in indirect and administrative services, including IT, sales, finance, human resources, quality assurance, maintenance, and engineering.

“While it is never easy to determine where to make reductions in our workforce, the positions affected are those in our indirect and administrative services departments,” said a statement from Starrett CEO Roger Amrol. The company has offered severance packages, MassHire career services, and HR support to those impacted, while reaffirming its commitment to maintaining its Athol operations.

National Dislocated Worker Grants are designed to provide direct services and assistance in areas experiencing major economic dislocation events, particularly where workforce needs exceed available local resources. The grants are supported under the Workforce Innovation and Opportunity Act of 2014.

For many in northern Massachusetts, Starrett’s downsizing has been a significant disruption to the rural labor market. The Department of Labor’s grant is intended to help displaced workers transition to new employment opportunities through retraining programs, career services, and other workforce development initiatives.