Campbell to Cut Jobs
Campbell Soup announced plans to restructure its manufacturing and distribution network in a move that will result in job cuts.
The company aims to strengthen growth, improve return on invested capital, and create a more efficient operation.
Campbell to Close Oregon Facility and Reduce Workforce at Indiana Plant
The plan includes shutting down Campbell's Tualatin, Oregon facility in phases, with a complete closure expected by July 2026.
This closure will impact 120 out of 330 employees in the first stage, starting this August. Additionally, Campbell will reduce its workforce at the Jeffersonville, Indiana plant.
Campbell to cut 415 jobs as it restructures its manufacturing plants https://t.co/MzBoGbFYLP pic.twitter.com/OMv7N3RecU
— Reuters (@Reuters) May 28, 2024
Source: Twitter/Reuters
The Indiana facility will focus on Late July tortilla chips, while kettle potato chip production will be relocated to other Campbell plants.
This shift will affect approximately 85 out of 230 employees at the Jeffersonville location, with the changes taking effect in July 2024.
Campbell to Invest in Modernization While Reducing Workforce
While Campbell Soup is reducing its workforce in some areas, the company is also investing in modernization and efficiency. Campbell plans to invest roughly $230 million in capital expenditures through fiscal 2026.
This investment will target newer facilities within the Campbell network, with the goal of creating a more agile and cost-effective manufacturing operation. These upgrades are expected to generate 210 new job opportunities throughout the company.
The news of the job cuts comes after Campbell announced plans to expand Goldfish cracker production at its Utah facility last July. This expansion is expected to be completed by the end of 2024.
The announcement of the restructuring resulted in a 2% decline in Campbell's share price during morning trading. The company employed around 14,500 people as of July 2023.
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