The DeSoto Independent School District (ISD) will end its transportation contract with First Student on June 30, leading the Cincinnati-based company to close its local facility and lay off 74 employees. The district plans to transition its student transportation services to Durham School Services, pending approval at a special school board meeting scheduled for June 29.

The proposed contract with Durham School Services would span five years and is valued at nearly $3.5 million. Durham currently provides school bus services to several districts in the Dallas-Fort Worth area, including McKinney ISD and Coppell ISD. DeSoto ISD says the move follows a standard contract review process initiated in the spring, involving requests for proposals and evaluation of bids based on service models, operational capacity, and pricing.

“[The] review was designed to ensure the district continues to provide safe, reliable, and cost-effective transportation services while responsibly stewarding taxpayer resources and supporting student needs,” said Tiffanie Blackmon-Jones, DeSoto ISD's chief communication officer.

Approximately 3,500 students are eligible for transportation through the district annually, though daily ridership averages between 1,500 and 1,600.

In response to the contract termination, First Student submitted a Worker Adjustment and Retraining Notification (WARN) letter on June 9, indicating layoffs and the closure of its DeSoto location. The WARN filing lists 54 drivers among the employees expected to be laid off, along with 13 monitors or aides, three full-time technicians, and several others including a dispatcher, a shop manager, and a location safety manager. Some laid-off employees are represented by Local 1338 of the Amalgamated Transit Union, which covers transit workers throughout Dallas.

First Student stated it was unable to meet the federally required 60-day advance notice for layoffs, known as a WARN notice, because it had not received sufficient prior warning from DeSoto ISD regarding the contract termination. The company described the news as “sudden and unexpected” and said it filed the WARN letter as soon as practicable. First Student has not publicly disclosed when it first learned of the possible contract termination and declined multiple requests for comment.

Federal law mandates that businesses with over 100 employees provide a 60-day notice before plant closures or mass layoffs unless unforeseen circumstances prevent compliance.

First Student operates more than 530 locations nationwide and is reportedly preparing for an initial public offering later this year.

The final decision by the DeSoto ISD school board regarding the new contract with Durham School Services is expected following the June 29 meeting.