Virginia-based Nestlé USA says only 40 employees will be laid off at the company’s Fort Wayne distribution center. A spokesperson for Nestlé tells Inside INdiana Business a WARN Notice filed with the state incorrectly stated the facility would close at the end of the year, affecting nearly 70 workers.
The layoffs part of a previously-announced plan by Nestlé USA to transition its pizza and ice cream businesses to a warehouse model. In a news release issued in May, Chief Executive Officer Steve Presley said the plan would result in the closure of eight frozen distribution centers, however the spokesperson says Fort Wayne will not be included.
Nestlé USA says the layoffs are expected to begin October 18 and continue through December 31. All of the impacted employees have been notified of the plan and the layoffs will be permanent. The employees do not have bumping rights.
"These employees have worked incredibly hard to serve our customers," Presley said in the news release. "Treating them with respect through this process is a top priority for us, and we are committed to doing all we can to provide them information, resources and support."
The company said the transition away from the DSD model is "a critical building block of Nestlé’s business strategy and will be a key step towards its profitable growth agenda."
The notice was sent to the Indiana Department of Workforce Development as required by the Worker Adjustment and Retraining Notification (WARN) Act, a U.S. labor law that mandates employers with 100 or more employees to provide a 60-day warning of a plant closing or mass layoffs.
Editor’s Note: A previous version of this story mentioned the facility would close and nearly 70 employees would be laid off, as stated in the WARN Notice.