TAUNTON – Nestle USA Inc. and Nestle Dreyer’s Ice Cream Co. will be closing the distribution and transfer center at 455 John Hancock Rd. in Taunton and laying off 49 employees.
Nestle filed a Worker Adjustment and Retraining Act notice with the Mass. Department of Labor, informing the state that the move is part of a restructuring that will impact the company’s retail sales workforce and deep frozen supply chain.
In its initial filings with the state, Dreyer’s stated purpose for doing business in Massachusetts was to manufacture and distribute frozen consumables. In its release announcing a broad restructuring of operations, Nestle said that the restructuring would cause it to close eight company-owned frozen distribution centers and a number of frozen inventory transfer points.
The closure of the Taunton site is expected to be permanent.
Layoffs will begin on Oct. 18 and continue until Dec. 31, when the company anticipates that the site will be closed.
The company initially announced restructuring of its frozen foods segments in May, saying it was exiting its company-owned frozen Direct-Store-Delivery network for its Pizza and Ice Cream businesses to transition to a warehouse model. The company said at the time that it would begin in the third quarter of 2019 and finish in the second quarter of 2020.
In its 2018 annual report, the company reported $661.7 million in company-wide restructuring costs (with conversion rates from Swiss francs based on Dec. 31, 2018). Of those costs, $144.4 million were said to be in the company’s Americas segment. Data wasn’t available for 2019.
In 2017, company-wide restructuring costs were said to be $690.4 million (based on the end-of-year conversion rate for 2017).
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
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