Layoffs continue to rise in the food Industry as companies cut jobs and close facilities

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Alicia Thompson

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Food manufacturing layoffs are continuing to add up in 2026 as major companies reduce headcount, close plants and restructure operations. The latest confirmed moves center on Nestlé’s global cuts, Del Monte Foods’ California closure and Leprino Foods’ layoffs in Lubbock, Texas.

Nestlé announces the biggest confirmed cut so far

angelicavaihel/Pixabay
angelicavaihel/Pixabay

Nestlé is planning to eliminate 16,000 jobs globally over a two-year period, according to company statements cited in recent reporting on the food manufacturing sector. The reduction equals nearly 6% of Nestlé’s workforce and includes about 4,000 manufacturing and supply-chain positions.

The company said the cuts are part of a broader restructuring under new leadership. Nestlé also said the plan is intended to streamline operations, improve productivity and reduce costs as the company adjusts its business.

Those numbers make Nestlé the largest confirmed workforce reduction mentioned in the latest round of food manufacturing layoffs. The scale stands out because it reaches across multiple operations rather than a single plant or one regional office.

California and Texas are seeing confirmed local fallout

Joseph Russo/Pexels
Joseph Russo/Pexels

Del Monte Foods announced the closure of its fruit-processing facility in Modesto, California, affecting roughly 600 full-time employees. During harvest periods, the Modesto closure can also affect as many as 1,200 seasonal workers tied to the site’s operations.

The company’s shutdown follows its bankruptcy and asset-sale process, which ended with new ownership. The Modesto plant had operated for decades and was one of California’s best-known food-processing sites.

In Texas, Leprino Foods announced layoffs at its facility in Lubbock as part of operational changes. The company has not released a comprehensive public count of affected Lubbock positions in the material referenced here, so the exact Texas total is not yet publicly confirmed.

Companies point to costs, demand and restructuring

BI ravencrow/Pexels
BI ravencrow/Pexels

The reasons cited by these companies are consistent across the sector in 2026. Nestlé said its 16,000-job reduction is tied to restructuring, productivity improvements and cost reductions under new leadership.

Del Monte’s closure came after bankruptcy and an asset-sale process, linking its layoffs directly to financial restructuring. In Leprino’s case, the company said business needs and efficiency improvements were behind the layoffs at its Lubbock facility.

Industry analysts have said manufacturers are increasingly using automation, facility consolidation and cost-cutting to respond to changing consumer demand and higher operating expenses. For shoppers and workers, that means more food companies may keep reshaping where products are made, even when brands remain on store shelves.

Meet Alicia Thompson

Hi, I’m Alicia Thompson. At Gourmetry, I try to make gourmet cooking accessible to everyone with easy, bold, and delicious recipes for every occasion.

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