Dive Brief:
- Rich Products, one of the largest convenience store foodservice producers in the U.S., will lay off 139 employees as it prepares to shutter its manufacturing facility in Santa Fe Springs, California, a company spokesperson confirmed to C-Store Dive on Friday.
- The spokesperson did not share when the facility will close. However, according to a California WARN notice processed late last month, employees at the facility will be let go on March 31.
- This will be Rich’s third round of layoffs since last summer. It previously cut more than 170 employees in both July and November due to facility closures in Minnesota and South Carolina.
Dive Insight:
Both of Rich’s layoffs and facility closures last year were part of an efficiency assessment, local publications in South Carolina and Minnesota reported at the time. Its latest shutdown is happening for those same reasons, according to a statement provided by Rich’s spokesperson.
But unlike its previous closures and layoffs, the Santa Fe Springs shutdown is also being made to offset costs driven by inflation, including higher ingredient and packaging prices, the spokesperson said.
“Continually optimizing our operational efficiency is an important move that enables us to drive growth, create enhanced value for our customers and keep costs down for consumers who enjoy our products,” Rich’s spokesperson said.
The spokesperson did not respond by press time when asked to clarify what products are manufactured at the Sate Fe Springs facility. Last year’s closures included a baked goods facility and a pizza plant.
Rich’s spokesperson emphasized that the company is focused on supporting the terminated employees through this transition by offering compensation packages, career assistance and job search resources.
