Lamb Weston Shutters Connell, Washington, Plant as Part of Restructuring Plan
In the wake of its most recent earnings statement and a slide in the financial results tied to them, Lamb Weston Holdings Inc. announced a restructuring plan that the company expects to generate some $55 million of pre-tax cost savings in fiscal 2025 and a $100 million reduction in capital expenditures in fiscal 2025, according to a release from the company.
The plan includes the closure of the Connell, Wash., processing plant, the temporary curtailing of production lines and schedules in North America, the reduction of approximately 4% of global workforce, and the elimination of unfilled job positions.
A local news report noted that the Connell plant shutdown, effective Oct. 1, 2024, would result in the layoff of 375 workers there. The layoffs were reported in a warning notice to the state, in which the company pointed to supply and demand imbalance as the primary cause for the move. The plant had already stopped making frozen french fries on Sept. 30 and began shutting down the facility. Layoffs are expected to take effect Nov. 30.