SALT LAKE CITY — Advantage Services, a Salt Lake City nonprofit that provides jobs for people facing barriers to employment, has furloughed 110 employees as it struggles with a $1 million cut to its largest city contract and sharply rising insurance costs.
Founded in 1992, the nonprofit employs people facing homelessness, disabilities, addiction and barriers related to criminal records. Its workers handle cleanup and biohazard removal, landscaping, snow removal and transportation for homeless service providers. Others staff kitchens and support programs at housing sites.
"Advantage Services began a three-week furlough Oct. 12 after it could not cover a third payroll in October," CEO Robert Ferris said. "The nonprofit had 160 employees six months ago and has since permanently lost 50 positions."
Ferris said the nonprofit's largest Salt Lake City contract was reduced from about $2.165 million to $1 million. He said the loss of work, along with higher insurance and fuel costs, has made it difficult to keep the organization financially stable.
“We had less work,” Ferris said. “Insurance shot up over 300%. So with loss of work, higher insurance costs, higher fuel costs, it’s just been very difficult to maintain a solvent company.”
Salt Lake City said it reduced the contract after moving more cleanup work to its own staff. The city created an Urban Services Division in spring 2025 to consolidate staff responsibilities. The division later reported less demand for outside cleanup services, leading the city to propose reducing funding for Advantage Services.
City Council approved a $1 million reduction in spring 2026, according to the city. The city said it continues to look for other work for Advantage Services, including projects in parks and along city streets.
Ferris said the city's decision may have reduced cleanup costs but overlooks the value of giving people who need a foothold a chance to work.
“The real cost is helping people, working with those who are the most vulnerable, getting them back into society,” Ferris said. “Our company, we could provide the service at a lower cost and we’re making an impact with the homeless.”
Alexander Adam, one of the furloughed employees, said Advantage Services hired him after he lost a custodial job and feared he would not be able to pay rent.
“It kept my home. It kept me off the street,” Adam said. “Without the job I would have definitely drowned.”
Becky V., who cooks at Valley Woods Bistro inside permanent supportive housing, said residents depend on her team for what may be their only meal of the day. With the kitchen closed during the furlough, she worries about what she will tell residents who ask about dinner.
“What do I say when they ask me what’s for dinner tonight?” she said. “We’re closed for three weeks … now I just heard that it might be forever.”
Ferris said Advantage Services needs about $500,000 to operate through the end of the year. The nonprofit is pursuing additional contracts, fundraising and possible partnerships or a merger with another nonprofit to preserve jobs and services.
Ferris said the organization's executives will be able to find work if Advantage Services cannot reopen, but he worries about the employees who depend on the nonprofit for their livelihoods.
“What about the other 107 people who count on this place?” Ferris said. “They will not be ok."