US-based Dean Foods is set to shut down Denver-based Robinson Dairy in November, a move which will result in 40 job losses.
The company is shifting production from Robinson Dairy to Meadow Gold Dairy facility in Englewood. The transition involves transfer of 96 jobs to the Englewood facility while some of them will be transferred to a Meadow Gold facility in Greeley.
Dean Foods spokesman Jamaison Schuler was quoted by Denver Business Journal as saying, "We regret the impact that this decision will have on our employees and our community."
"The decision to eliminate jobs in any part of our business is never an easy one. We need to improve our supply chain capability, and operating fewer plants will help us streamline our operations," Schuler added.
Dean Foods gained ownership of Robinson Dairy in 2001 when it merged with Dallas-based Suiza Foods which acquired Robinson in 1999.
Earlier this year, Dean announced plans to close about eight to 12 of its dairy facilities by mid-2014 in order to reduce costs and boost efficiency.
The company owns brands including Meadow Gold, Berkeley Farms, Pet, Garelick Farms and Dean's.