BRENHAM, Texas – Blue Bell Creameries has announced that it is laying off 1,450 workers and furloughing 1,400 more following a voluntary recall of its ice cream products over contamination issues.
Because of the “extended timeline required to ensure the highest quality and safety of Blue Bell’s products when the company resumes production, and because supply and distribution will be limited for some time to come,” Blue Bell Creameries CEO and president Paul Kruse has announced that the company will have to reduce the size of its work force and take other cost-cutting measures, including furloughs and salary reductions.
On April 20, Brenham, Texas-based Blue Bell voluntarily recalled all of its products currently on the market, made at all of its facilities, because they have the potential to be contaminated with Listeria monocytogenes. The recall included ice cream, frozen yogurt, sherbet and frozen snacks made at all Blue Bell facilities. It distributed the products at foodservice accounts, convenience stores and supermarkets in Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia, Wyoming and international locations.
“The agonizing decision to lay off hundreds of our great workers and reduce hours and pay for others was the most difficult one I have had to make in my time as Blue Bell’s CEO and President,” Kruse said. “At Blue Bell, our employees are part of our family, and we did everything we could to keep people on our payroll for as long as possible. At the same time, we have an obligation to do what is necessary to bring Blue Bell back and ensure its viability in the future. This is a sad day for all of us at Blue Bell, and for me personally."
The process of cleaning and improving Blue Bell’s four production plants is going to take longer than the company initially anticipated, it said, especially at the main plant at the headquarters in Brenham, Texas, where it said it expects major repairs and equipment replacements.
There is no firm timeline for when Blue Bell will begin producing ice cream again. When production resumes, it will be limited and phased in over time.
Kruse said the employee actions affect three groups:
- Employees who are essential to ongoing operations and cleaning and repair efforts will continue to work but have their pay reduced.
- A second group of employees will be placed on partially paid furlough. They will be paid a substantial portion of their current pay, with the expectation that they will return to work as production resumes.
- Because there is not a clear timeline for when production will resume, and because supply and distribution will be limited when it does, a third group of employees will be laid off.
Approximately 1,400 employees will be furloughed, and approximately 750 full-time and 700 part-time employees—37% of the total Blue Bell workforce of 3,900—will be laid off, Kruse said.
Blue Bell also has suspend operations and laid off employees at the following distribution centers: Phoenix (2 branches) and Tucson, Ariz.; Denver; Indianapolis; Kansas City and Wichita, Kansas; Louisville, Ky.; Albuquerque, N.M.; Las Vegas; Raleigh and Charlotte, N.C.; Columbia, S.C.; and, Richmond, Va. These decisions were based on the ability to service those locations given the limited production capacity Blue Bell expects when it resumes operations. Distribution centers typically service a 75-mile radius.
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