International Food Producer to Shut Down San Antonio Facility, Leading to Mass Layoffs
San Antonio – In a significant piece of news, Bimbo Bakeries USA Inc., a global food producer and an American subsidiary of Mexico-based Grupo Bimbo, has announced that it will shutter its San Antonio production facility in fall 2024. This move will result in layoffs for all 138 staff members working at the plant, according to a WARN notice filed with the Texas Workforce Commission.
Statement from Bimbo Bakeries
In a press statement issued to the Business Journal via a spokesperson, the multinational company explained that the closure is a part of a broader restructuring effort that was kick-started earlier in the year. This strategic move also saw two plant closings in New York. The factory in San Antonio, located at 512 S. Gevers, is known for producing baked goods under popular brand names such as Sara Lee, Entenmann’s, Mrs Baird’s, and Thomas.
The company said, “After an intricate analysis and due consideration, we have made this hard decision to cease the San Antonio, Texas, bakery this fall”. Bimbo Bakeries went on to clarify that they will transition its production to other bakeries in their network “bette equipped to support our future growth”.
The Impact and Aftermath
The projected full shutdown of Bimbo’s San Antonio operations is slated for October 5, 2024. This shutdown will not result in a total absence of Bimbo operations in the state as the company continues to operate in areas like Houston and Dallas-Fort Worth.
In parallel news, Quality Custom Distribution, a restaurant supply corporation based in Frisco, Texas, is also expected to let go of 57 employees and shut its Schertz warehouse in November 2024.
Investing in the Future
Bimbo Bakeries’ decision comes in the wake of the company’s continuous efforts to evaluate their assets and optimize their production. The restructuring aims to streamline their production process and transition activities to well-equipped plants in order to meet the anticipated growth in the future. This major change, however, comes with the unfortunate consequence of job losses, marking a critical phase for the company’s employees based at the now-closing San Antonio facility.
The transition towards a more streamlined, fine-tuned operation is part of Bimbo Bakeries’ long-term goal. As the world’s largest baking company, they employ more than 135,000 associates across 33 countries.
The closure of the San Antonio facility marks a significant change in Bimbo Bakeries’ American operations and will undoubtedly have a significant impact on the local economy of San Antonio.
