Lutheran Social Services announces liquidation, 283 employees lose jobs

FARGO (KVRR) – Lutheran Social Services of North Dakota says its programs are being suspended and employees are being laid off as part of a liquidation plan.

The organization says the decision was driven in large part by financial issues with Lutheran Social Services Housing, which impacted agency reserves and resulted in negative cash flow projections, according to president and CEO Bob Otterson.

“LSS Housing in recent years has been draining the reserves of the affiliated agency,” Otterson said. “This financial pressure has hampered the ability of an essential, faith-based organization to serve its clients, specifically those in primary mission areas such as services to children, families, seniors and others.”

The organization says the downturn in oil production and the pandemic were also factors.

LSS says 283 full-time and part-time staff will be laid off, along with several long-term contractors.

LSS Housing owns and operates 22 properties in 14 communities and manages another 14 residential properties in 10 communities.