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Campbell Soup To Shift Canadian Production To U.S., Cut About 380 Jobs

Campbell Soup Co. (CPB) said that it plans to close its manufacturing facility in Toronto to improve the operational efficiency of its North American thermal supply chain network. Campbell will move its Canadian headquarters and commercial operations to a new location in the Greater Toronto Area.

The company said it has made the decision to wind down manufacturing at its Toronto facility, following a review of its manufacturing operations.

Canadian soup and broth production will be consolidated into the company's existing U.S. manufacturing network. Opened in 1931, Toronto is the oldest plant in the Campbell thermal network. Due to its size and age, the Toronto plant cannot be retrofit in a way that is competitively viable.

Campbell noted that it plans to operate the Toronto facility for up to 18 months and will close it in phases, transitioning its production to three U.S. thermal plants in Maxton, North Carolina; Napoleon, Ohio; and Paris, Texas. Campbell employs nearly 600 people in Toronto including its headquarters, commercial operations and manufacturing functions. Approximately 380 manufacturing and manufacturing-related roles will be impacted.

Campbell said it will offer affected employees support to assist with the transition by providing severance packages that recognize their commitment and service. The company will provide career counseling with employment advisors who can assist with job searches, resume writing and preparing for interviews. Campbell will also host job fairs and provide on-site financial planning workshops, among other benefits, to assist employees with the transition.

Campbell noted that it will relocate its Canadian headquarters, along with nearly 200 roles, in the next several months. Site selection is underway for a new location in the Greater Toronto Area, which will feature a new Food Innovation Center. Campbell will continue to make soup and broth recipes tailored to Canadian tastes.

The company said the decision to stop manufacturing in Toronto is part of a previously-announced cost savings initiative. As of October 29, 2017, Campbell has generated $345 million in annual ongoing cost savings from this multi-year initiative, and is investing a portion of the savings back into the business.

Campbell currently employs approximately 18,500 people worldwide.

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