The world's largest mozzarella manufacturer is set to shut one of its California plants in weeks, leading to hundreds of job losses.
Leprino Foods—which supplies cheese to companies including Domino's, Papa John's and Pizza Hut—announced in November 2024 that it would shut its Lemoore East facility, around 30 miles south of Fresno, in early 2026, resulting in 368 job cuts.
The company told FOX26 News that the decision was made in part due to "high operating costs" in California and the opening of a new facility in Lubbock, Texas.
Newsweek contacted Leprino Foods for comment via its website outside of regular working hours.
Why It Matters
It comes as a number of major companies have scaled up operations in Texas over high operating costs in states like California, and a beneficial regulatory environment in the Lone Star State.
KFC announced earlier this year that it was moving its headquarters from Kentucky to Texas, while Chevron said last year that its headquarters would move from San Ramon, California, to Houston.
Meanwhile, Elon Musk also moved the headquarters of his companies X, Tesla and SpaceX to Texas from California.
What To Know
Leprino Foods filed a WARN notice on October 23 this year, notifying 268 employees of their permanent layoffs, according to California's Employment Development Department. A second WARN notice was issued on December 15, affecting a further 100 employees.
The company said in 2024 that the move to close the California plant was a "difficult decision and one we do not take lightly."
"This decision is influenced by several factors, including the facility’s age, anticipated capital requirements to make improvements to the facility and add or replace equipment and systems, high operating costs in California, the long-term milk supply outlook, and the increased capacity due to the opening of our Lubbock, Texas, facility," it said, according to FOX26 News.
Leprino Food's Lemoore East plant has been in continuous daily operation since 1910.
The company has another California plant, Lemoore West, which is not expected to be affected by the layoffs. The company describes the plant as "one of the largest cheese manufacturing facilities in the world," equivalent to the size of 11 football fields.
The company's new facility in Lubbock is expected to be fully operational in 2026, and will accommodate around 600 employees. The facility will convert around 8 million pounds of milk to cheese and dairy ingredients every day when completed.
What People Are Saying
Leprino Foods told Fox26 News in November 2024: "Leprino Foods regularly assesses our manufacturing network to ensure we can meet both current and future production demands while adapting to the evolving needs of our customers. Following a thorough evaluation, we intend to close our Lemoore East facility in early 2026. This is a difficult decision and one we do not take lightly.
"We are announcing this decision now, more than a year in advance, as part of our commitment to supporting the Lemoore East team through a cooperative, thoughtful transition. This choice in no way reflects the hard work of our approximately 300 Lemoore East employees, who contribute to Leprino’s success every day.
"Over the coming months, we will work closely with our Lemoore East employees, union representatives, and community leaders to provide transition support and resources for affected team members."
Former Leprino employee Dave Costa told KSEE/KGPE: "This is the highest paying job in the valley—one of the highest paying factory jobs in the valley, and it’s going to be a great loss to the city of Lemoore."
What Happens Next
The closure of the California plant and the mass layoff are expected to be completed by early 2026.