Grupo Bimbo, a major player in the food and beverage industry, is set to close two bakery sites in the US as part of its restructuring efforts. The decision to shutter the facilities in New York state comes as a result of “reduced capacity in the manufacturing network,” according to a WARN notice.
A total of 131 workers will be affected by the closures at the Auburn and Olean plants, which are operated by Grupo Bimbo’s subsidiary, Bimbo Bakeries USA. The shutdown of the Auburn site is scheduled for September 6, while the Olean facility will cease operations on November 2.
In a statement, Grupo Bimbo was asked to confirm the impact of the closures on the production of its bakery brands in the US, including Sara Lee breads, Lender’s bagels, and Little Bites cakes.
This is not the first time Grupo Bimbo has closed a bakery in the US. Earlier in May, the company shut down a plant in Bellevue, Nebraska, affecting 172 employees. The decision to close the Nebraska facility was based on a recent assessment that found it “inconducive to our company growth plans.”
The closure of the Nebraska bakery resulted in the migration of production to other sites within Grupo Bimbo’s manufacturing network. The company’s overall performance in the second quarter saw a decline in North American net sales, attributed to a challenging consumption environment in the US and strategic business exits.
Despite the challenges, Grupo Bimbo remains optimistic about its future prospects. The company’s total gross profits for the group have shown improvement, indicating a strong foundation for growth in the food and drink business.
