The biggest name in canned soup – Campbell’s – has announced that it will be making some big cuts to its operations in an effort to eliminate what it refers to as “inefficient” sites.
One of these is a plant in Tualatin, Oregon – a location Campbell’s acquired in when it purchased organic soup company Pacific Foods in 2017. The 250,000 square foot operation will be closed in phases, says Campbell’s, fully ceasing to operate by 2026. In the meantime, the plant – which currently employs some 330 workers – will see phase 1 of the closure process begin in August of this year, impacting 120 employees.
Campbell’s, in a press release, referred to the “aging” and “inefficient nature” of the Tualatin plant, saying it “can no longer support the increased consumer demand and continued growth of the business” and that it would move production to other plants in its network as well as its co-manufacturing partners.
Most Read on IEN:
- Hershey Sued Over Deceptive Carvings on Reese's Products
- Kennametal Factory Damaged in Arkansas Tornado
- Air Force Awards $13B for New Fleet of 'Doomsday Planes'
- Heineken Uproots Huge Apple Orchard as Cider Sales Slip
The other blow to Campbell’s factory workers comes by way of the downsizing of the company’s Jeffersonville, Indiana plant. Campbell’s says the site will “specialize” beginning this summer, focusing on the company’s Late July brand of tortilla chips and cutting other products from the line. This will impact more than a third of the plant’s 230 employees, bringing total job cuts from the combined moves to 415.
While Campbell’s acknowledged this was “difficult news” for the impacted plants, it was quick to point out its growth objectives in other areas. For example, the company said that it would add jobs as it invested millions in “newer, more agile facilities in its network.” These include factories in Maxton, North Carolina, Hanover, Pennsylvania, Franklin, Wisconsin and Richmond, Utah.
Campbell’s says its operational changes are part of its “ongoing effort to invest in and transform its supply chain to fuel business growth, improve return on invested capital, and enhance the overall effectiveness and efficiency of its manufacturing and distribution network.”
Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news.
