TreeHouse Foods Closing Two Factories, Layoffs Announced

Closed sign on the wall
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TreeHouse Foods Shuttering Factories in Minnesota and Indiana

Multinational food processing company TreeHouse Foods Inc. (NYSE:THS) has announced that it is shutting down two factories—one in Plymouth, Indiana, and another in Brooklyn Park, Minnesota—and partially closing a third one in Dothan, Alabama. Following the closures, hundreds of workers will be left without jobs.

The Illinois-based packaged foods company has confirmed that about 150 employees will lose their jobs following the shutdown of its factory in Plymouth. The factory, which was primarily producing pickles, peppers, and relish, will be permanently closed by end of the year.

Another 90 or so workers will lose their jobs at TreeHouse Foods’ Brooklyn Park factory, which was producing boxed meals and side dishes. The factory is likewise expected to wrap up operations by the end of this year.

The third factory, in Dothan, will face significant downsizing because the company will be scaling back its operations. About 135 employees will face layoffs following the partial closure of that factory, over a 10-month period.

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All in all, approximately 375 workers at the three factories will be left without work as the company trims its workforce. The affected employees account for about two percent of TreeHouse Foods’ total workforce of more than 16,000 employees.

The restructuring efforts will cost the company an estimated $44.5 million. Nonetheless, TreeHouse expects to realize cost savings from the restructuring initiative in the long run.

According to the CEO, Sam K. Reed, a company-wide restructuring had become necessary for TreeHouse Foods in order for it to “remain competitive in a rapidly changing marketplace for packaged foods.”

The packaged foods industry is undergoing a transition, as an increasing number of consumers are opting to eat healthier. The food industry is seeing a shift in consumer preferences as Americans are opting out of consuming processed foods and choosing instead to buy more fresh produce.

The trend has attracted e-commerce behemoth Amazon.com, Inc. (NASDAQ:AMZN) to enter food retail by buying the famous grocery chain Whole Foods Market, Inc. (NASDAQ:WFM) Meanwhile, retail giant Wal-Mart Stores Inc (NYSE:WMT) has been heavily investing in its fresh grocery business to attract American consumers.

TreeHouse Foods is a publicly traded S&P 400 company and holds some of the world’s most popular private label food brands.

 

Sources

TreeHouse Foods Announces Plans to Close Brooklyn Park, Minn. and Plymouth, Ind. Facilities; Removal of Non-Peanut Packaging Operations From Dothan, Ala. Facility,” TreeHouse Foods Inc., August 3, 2017.

Company Overview,” TreeHouse Foods Inc., last accessed August 3, 2017.

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