Camden-based Campbell Soup Co. on Tuesday said it plans to shut down its Tualatin, Oregon, facility and reduce staff at a site in Jeffersonville, Indiana, in cost-cutting moves that will affect 415 jobs.
Campbell said it plans to close the facility in phases and expects to cease operations by July 2026, with the first phase to impact 120 of its 330 employees in August.
According to the company, the decision was made as part of an ongoing effort to invest in and transform its supply chain to fuel business growth, improve return on invested capital and enhance the overall effectiveness and efficiency of its manufacturing and distribution network.
“To fuel growth and transform our manufacturing and distribution network, we must invest and further strengthen our supply chain,” Dan Poland, Campbell’s chief supply chain officer, said. “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 optimization opportunities across the network to build our supply chain of the future.”
The Oregon plant, acquired in 2017 as part of Campbell’s purchase of Pacific Foods, produces Pacific’s organic soup, broth and plant-based beverages. The site consists of multiple leased buildings of approximately 250,000 square feet. The aging facility and inefficient nature of the site’s configuration can no longer support the increased consumer demand and continued growth of the business.
The company plans to move the plant’s soup and broth production to other thermal and aseptic plants in its network and shift plant-based beverage production to leading co-manufacturing partners.
The Indiana plant will specialize in Late July tortilla chips. Production of kettle potato chips will be moved to two other Campbell’s plants. The change will go into effect in July and will impact approximately 85 of the 230 employees at Jeffersonville. The plant will continue to produce regional snack brands.
In total, the closure of the site and the changes to the plant will impact 415 employees. The company will provide impacted employees with separation benefits and job placement support.
Poland said: “We recognize 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 provide support and assistance during these changes.”
To enable the supply chain network of the future and unlock the growth of the business, the company is making capital investments of approximately $230 million through fiscal 2026 at newer, more agile facilities in its network, with approximately $80 million spent to date.
These projects are expected to create approximately 210 new roles across the organization and will include new training and development programs for employees.
