Hillshire Brands, a US-based food company, plans to close its manufacturing facility in Florence, Alabama, a move which will result in about 1,100 job cuts.
In a regulatory filing, the company said that continuing operations at the plant will not allow Hillshire meet its efficiency or long-term profitability expectations.
The company plans to shift production to its other locations. The facility engages in the production of breakfast sandwich and breakfast sausage products.
The closure, which will take place by 30 December, is expected to incur costs of around $34.4m, including cash severance charges of approximately $10.4m and non-cash accelerated depreciation charges of about $21m, along with other cash closure costs $3m.
Hillshire Brands chief supply chain officer Tom Hayes said that closing the Florence facility was a very difficult decision to make.
"For many years, these employees dedicated themselves to running a quality operation, which they have done exceptionally well. Unfortunately, after looking at our business, we determined that this facility will not allow us to meet our efficiency or long-term profitability expectations," added Hayes.
The company said it will provide severance and outplacement support to closure-affected staff as well as work with state and local training and employment agencies to facilitate transition for employees.
