Major McDonald's french fry supplier closes plant in Washington, slashes jobs as inflation continues
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A major french fry supplier is cutting jobs as customers continue to count their pennies amid inflated prices at fast-food chains.
Lamb Weston, the largest producer of french fries in North America, announced last week it was closing its plant in Connell, Washington, meaning 375 employees, or 4% of its workforce, would be laid off, according to an earnings report released last week.
«Restaurant traffic and frozen potato demand, relative to supply, continue to be soft, and we believe it will remain soft through the remainder of fiscal 2025,» Tom Werner, Lamb Weston president and CEO, said last week on an earnings call.
MCDONALD'S DAYS AWAY FROM BRINGING MINIATURE VERSIONS OF POPULAR FOOTWEAR TO US HAPPY MEALS
Wendy's Co. french fries are arranged for a photograph at a restaurant location in Mt. Vernon, Illinois, U.S., on Wednesday, July 29, 2015. Wendy's Co. is scheduled to release quarterly earnings on Aug. 5. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)
«Together, we expect these actions will help us better manage our factory utilization rates and ease some of the current supply-demand imbalance in North America,» he added. «We are also taking actions to reduce operating expenses, including reducing headcount and eliminating certain unfilled job positions, as well as reducing capital expenditures. The combined estimated savings from these actions are reflected in our updated fiscal 2025 targets.»
The Eagle, Idaho-based company told Fox Business the restructuring won't impact supply to customers.
Fast-food chains have
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