Bimbo Bakeries Announces Layoff of 138 Texas Employees

Photo byBimbo Bakeries

138 workers at Bimbo Bakeries USA in San Antonio will be let go, the company has announced. This decision came from Grupo Bimbo, the company's parent, as part of a larger reorganization process.

Earlier this year, Grupo Bimbo revealed its intention to reorganize its North American operations, following a huge decline in financial performance. According to reports from Food Business News, the company experienced a steep drop in operating income, falling from $1.95 billion in 2022 to $660 million in 2023. Additionally, net sales saw a decrease of about 6% in 2022.

The layoffs in San Antonio follow closures and workforce reductions at several of Grupo Bimbo's sister brands. Two bakery plants in New York, Entenmann's and Freihofer's, were closed earlier this year, resulting in the loss of 131 jobs.

Grupo Bimbo, the world's largest bakery company, has faced mounting pressures to adapt to changing market conditions and consumer preferences. The restructuring is part of the company's efforts to streamline operations and improve financial performance in the face of these challenges.

The decision to lay off employees is never easy, and Bimbo Bakeries USA acknowledged the impact this will have on the affected workers and their families. The company said it is committed to providing support and resources to assist those impacted during this transition period.

The company has not yet disclosed further details about its restructuring plans but is expected to provide updates as the situation develops.

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