Idaho-based Lamb Weston to lay off hundreds of employees
Published at
Angela Palermo, Idaho Statesman
EAGLE (Idaho Statesman) — Eagle-based french fry giant Lamb Weston plans to lay off hundreds of employees.
The company announced Wednesday in its quarterly earnings report that it intends to slash 4% of its global workforce. The cuts include the elimination of certain unfilled positions, according to a news release.
Lamb Weston employs over 10,000 people around the world in sales offices, manufacturing plants and corporate offices. More than 1,000 of those employees work in Idaho, according to the Idaho Department of Labor. Its headquarters are near the intersection of Eagle Road and State Street in Eagle.
The company also has two plants in Idaho, in Twin Falls and American Falls, and corporate offices, research facilities and more than a dozen potato-processing factories in the Mid-Columbia area in Washington state, where it employs about 3,000 people.
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But it’s not known how many of those Idaho and Washington workers are affected by the layoffs. The company did not immediately respond to questions or a request for comment.
Lamb Weston is the largest producer of french fries in North America and is a major supplier to restaurants, grocery stores and fast-food chains, including McDonald’s.
The layoffs are part of the company’s “focus to win” strategic plan that aims to save at least $250 million a year, the release said. Workers who lose jobs will receive severance and benefits packages.
The announcement follows a big win from activist investment partnership Jana Partners to shake up the struggling Idaho company. Jana Partners, one of its largest shareholders, built a stake of over 5% in Lamb Weston last year before forcing the CEO to step aside over “disastrous financial results,” the investor previously said. In June, it won the corporate chairmanship and several other board seats.
Shareholders welcomed the earnings report. The company’s shares shot up 16.3% on Wednesday, closing at $57.19, up from $49.17 at Tuesday’s close. Lamb Weston stock trades on the New York Stock Exchange under the ticker LW.