Florida Frozen Dessert Manufacturer Lays Off workers due to "unforeseen business circumstances"

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Gelato Petrini, a local frozen dessert manufacturer, has announced significant layoffs at its Delray Beach facility, citing "unforeseen business circumstances" related to machinery upgrades. The company, an affiliate of Miami-based Heinlein Foods USA, terminated 90 workers, including 35 full-time and 55 part-time employees.

The layoffs were confirmed in a WARN (Worker Adjustment and Retraining Notification) notice filed with Florida’s State Rapid Response Program. According to Gelato Petrini's Chief Operating Officer, Koby Cohen, the terminations occurred on September 20 and are expected to be permanent for most affected workers.

The company was forced to make the difficult decision due to an extensive machinery line upgrade that exceeded the time they could sustain keeping the employees on the payroll. "It took longer than anticipated, and unfortunately, we couldn't carry the workforce during the process," Cohen told the Business Journal.

The majority of the affected employees worked in assembly positions. Gelato Petrini, which once employed 170 people at its peak, hopes to rehire many of the laid-off workers once the upgrade is completed, which is expected at the beginning of the new year.

Gelato Petrini is well known in South Florida as a retailer and wholesaler of authentic Italian gelato and sorbets. Their Delray Beach facility at 1502 S.W. 4th Ave also serves as the production plant for Heinlein Foods, a company with a 20-year history of producing frozen food in Argentina.

The industrial building, a 59,157-square-foot facility, is 42 years old and was acquired in 2002 for $1.9 million by DD 1205, Inc., managed by Tom Heller of Lighthouse Point.

Florida's WARN Act mandates that companies notify state and local officials of any mass layoffs or facility closures, which Gelato Petrini complied with through its recent filing.

While the layoffs represent a significant shift for the company, Cohen expressed optimism about the future. “We fully expect to rehire once the upgrades are completed,” he noted, offering a glimmer of hope to those affected by the current situation.

Impact on the Local Economy

This news comes at a time when the Florida job market remains resilient in many sectors, but manufacturing jobs in specific industries are still vulnerable to operational disruptions, such as the one faced by Gelato Petrini. The layoffs could temporarily affect the local workforce, but the company's plans to rehire suggest that the economic impact may be short-term.

Residents and community leaders in Delray Beach are now watching closely, hoping the upgrade will indeed lead to a resurgence in job opportunities at the beginning of next year.