The Campbell Soup plant in Sacramento will be closing, leaving about 700 people without a job.
Company officials say the plant will close in stages, starting this weekend and continuing through July 2013. Production at the plant is stopped, and will not start up again until Monday.
The public relations representative also told FOX40 it is cheaper to make their products elsewhere, and they made the decision to close the Sacramento plant for efficiency within the company.
The demand for soup in a can is down, the spokesman said, and they are pushing their new “pouch” soups.
“Sacramento is our oldest plant, it’s one of our least efficient plants, it has the highest production cost per case in the US. So from a business decision, the business case is very clear and compelling. That does not make it any easier when you have to look employees in the eyes and say these jobs are being eliminated. That’s tough,” said Anthony Sanzio, a spokesman for Campbell’s.
About 400-500 employees were at a last-minute meeting Thursday morning where the closure was announced.
The Sacramento plant, located near Franklin and 47th Avenue, opened in 1947.
They did not clarify when the first round of layoffs will take place, but the plant will close in July.
The plants in Stockton and Dixon are not closing or are being affected by the Sacramento plant closure.
The company did tell employees they were working on severance packages for employees, but did not announce details at Thursday morning’s meeting.