CCA To Lay Off Staff, Cut Costs Amid Criticism Of Private Prisons

By Markets MarketWatch Pulse

Corrections Corporation of America announced a plan to lay off 12% of headquarters staff and cut other costs Tuesday, as the company continues to face fallout from criticism of the use of private prisons in the U.S. CCA said Tuesday afternoon that it would slash 50-55 jobs and institute a cost-cutting plan that it expects will save about $9 million in 2017. Chief Executive Damon Hininger also said he would forfeit $2 million worth of restricted stock units he received in February and requested the board not award him any equity-based compensation in 2017. Companies that run private prisons have suffered greatly since the Justice Department said last month it would phase out use of the facilities for prisoners, and the Homeland Security department has said it will also examine use of private prisons. The growth of private prisons in the U.S. has been under a greater spotlight since the magazine and website Mother Jones published an expose over the summer detailing a reporter's experience working as a prison guard in a CCA facility. CCA shares were steady in after-hours trading, after falling 7.6% in regular trading; shares have fallen more than 45% since the Justice Department announcement in August.

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