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Campbell's supply chain revamp puts 415 jobs at risk amidst growth drive
FoodBev Media

FoodBev Media

28 May 2024

Campbell's supply chain revamp puts 415 jobs at risk amidst growth drive

Campbell Soup Company has unveiled its latest supply chain optimisation strategy, aimed at enhancing operational efficiency and driving business growth. However, the move comes with the news of potential job losses, impacting a total of 415 employees across its Tualatin, Oregon, and Jeffersonville, Indiana, facilities. Chief supply chain officer, Dan Poland, said: “To fuel growth and transform our manufacturing and distribution network, we must invest and further strengthen our supply chain”.

“By leveraging our best-in-class in-house capabilities combined with the expertise of trusted manufacturing partners, we will continue to make the highest quality products, with a more agile, flexible and cost-effective manufacturing network. We continue to evaluate optimisation opportunities across the network to build our supply chain of the future.”

Campbell plans to shutter its Tualatin plant, acquired in 2017, citing its ageing infrastructure and inefficiency in meeting consumer demand. This decision is expected to affect 120 employees initially, with full closure anticipated by July 2026. Meanwhile, operations such as soup and broth production will be transferred to other plants within the company's network, while plant-based beverage production will be outsourced to co-manufacturing partners. Additionally, Campbell announced a reorganisation at its Jeffersonville facility, where production will pivot towards specialising in Late July tortilla chips. The move will result in approximately 85 job cuts, with kettle potato chip production being relocated to other Campbell plants. Poland acknowledged the impact on employees, stating: "We recognise this is difficult news for our teams in Tualatin and Jeffersonville. Any action that impacts our people is made with careful deliberation, and we are committed to providing support and assistance during these changes." Amidst the job losses, Campbell says it remains committed to growth, with plans to invest $230 million through fiscal 2026 in newer, more agile facilities across its network. These investments are expected to create approximately 210 new roles, with projects including new aseptic soup production in Maxton, North Carolina, and expanded potato chip kettle capacity in Hanover, Pennsylvania.

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