Food and Beverage Business

Campbell Soup Co. to cut jobs at “inefficient sites” as part of restructuring plan.

Campbell Soup Co. to cut jobs at "inefficient sites" as part of restructuring plan. Campbell Soup Co. Food and Beverage Business

In the food and beverage industry, US company Campbell Soup Co. is taking steps to optimize its supply chain. This includes closing a manufacturing plant in Tualatin, Oregon, and downsizing another in Jeffersonville, Indiana. As a result, 415 jobs will be impacted.

The decision to close the Tualatin facility, acquired in 2017 as part of Campbell’s purchase of Pacific Foods, is driven by the need to invest in more efficient manufacturing and distribution processes to meet growing consumer demand. The plant currently produces Pacific’s organic soup, broth, and plant-based beverages.

“The aging facility and inefficient nature of the site’s configuration can no longer support the increased consumer demand and continued growth of the business,” Campbell explained.

The company plans to cease operations at the Tualatin site by July 2026, with initial layoffs affecting 120 of the 330 employees in August of this year. Production of soup and broth will be shifted to other plants in Campbell’s network, while plant-based beverage production will be outsourced to co-manufacturing partners.

At the Jeffersonville plant, future operations will focus on tortilla chips, with crisp production moving to Campbell’s Charlotte and Hanover plants. These changes will impact approximately 85 of the 230 employees at the Jeffersonville facility.

Campbell’s Chief Supply Chain Officer, Dan Poland, emphasized the company’s commitment to supporting affected employees during these transitions. He also highlighted the strategic importance of these changes in strengthening Campbell’s supply chain and improving its competitive position in the market.

Additionally, Campbell plans to invest $230 million in network-wide projects to enhance manufacturing capabilities and leverage co-manufacturing partnerships. This investment includes new aseptic soup production in Maxton, North Carolina, as well as upgrades in Pennsylvania and Wisconsin, creating 212 new jobs across the three sites.

In a separate expansion effort, Campbell will increase Goldfish cracker production at its Richmond, Utah plant by 50% by the end of 2024, resulting in 80 new jobs at the facility.

Looking ahead, Campbell is optimistic about volume growth in the food and beverage sector as consumer confidence increases. The company reported a 2% decline in volumes in its second-quarter results but anticipates improvement moving forward.

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