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Food producer Lamb Weston has announced plans to close an older, higher-cost processing facility in Connell, Washington and cut 4% of its workforce, amounting to roughly 428 jobs. The company cited soft demand relative to supply as the reason for these measures, with CEO Tom Werner stating that the challenging economic landscape is driving the need for cost-saving actions.
Lamb Weston’s restructuring plan aims to drive operational and cost efficiencies, generating approximately $55 million in pre-tax cost savings and reducing working capital in fiscal 2025. The company hopes these actions will help manage factory utilization rates and address the current supply-demand imbalance in North America.
Several other food companies have also made changes to their manufacturing network to cut costs and position themselves for growth. Flowers Foods, Bimbo Bakeries USA, Dr Pepper, and Campbell Soup are among the companies that have announced closures or restructuring plans in response to market challenges.
Overall, Lamb Weston’s decision reflects the broader trend in the food industry of companies seeking to streamline operations and increase profitability in the face of shifting consumer behaviors and economic pressures.
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Lara Heller graduated from the University of Amsterdam in the Netherlands with a degree in New Media and Communication. During her studies, she specialized in digital media, social media strategies, and content creation. She participated in various digital media projects during her university years, focusing particularly on online journalism and media ethics. After graduation, Lara started working as a content strategist at one of Europe’s leading digital media agencies, where she developed campaigns that strengthened the digital presence of numerous international brands.
