TreeHouse Foods Closing Brooklyn Park Plant, Laying Off 90 Workers
About 90 workers in Brooklyn Park will lose their jobs when Illinois-based TreeHouse Foods closes a manufacturing facility at the end of the year.
The snack and packaged meals maker unveiled a restructuring plan on Thursday that it calls “TreeHouse 2020.” It includes closing two of its plants, including the Brooklyn Park facilities, which makes boxed dinners and packaged sides.
TreeHouse said it would provide outplacement support to employees losing their jobs. The company expects to spend $44.5 million on charges related to all of its layoffs and facility closures.
“It is clear that we are witnessing an evolution in the retail landscape, as digital technology and bricks and mortar compete for the attention of consumers in a slow to no growth food and beverage marketplace,” TreeHouse CEO Sam K. Reed said in a statement.
By the end of the year, an additional 150 TreeHouse workers will be affected when the company closes its facility in Plymouth, Indiana. Workers there produced banana peppers, jalapenos, pickles and pickle relish.
A third facility in Dothan, Alabama will have 135 employees laid off over a 10 month period starting in November. However, that site will remain open.
The company announced the closures in tandem with their second quarter earnings report. It said sales and earnings each dipped slightly from the prior year.
“The decisions to close these facilities are difficult ones given their impact on families and communities,” Reed said. “However, despite the toll they exact, these measures are required if we are to remain competitive in a rapidly changing marketplace for packaged foods. In order to win in today’s marketplace, we must not only produce the finest quality at the lowest costs, but also fully utilize the capacity of our plants and the capabilities of our people in doing so.”