PepsiCo Shuts Down Quaker Oats Factory to Layoff Over 500 Workers

PepsiCo Inc. halted operations at its Quaker Oats plant in December 2023 due to potential salmonella contamination, which led to the recall of some granola products. The facility, located in Danville, Illinois, has been closed since then, and operations have yet to resume.

Announcement of the Danville Plant's Closure

However, it was revealed this week that PepsiCo decided to shut down the factory permanently. As per Global Food Industry News' Just Food, the local government officials of Danville also issued a statement via social media to confirm that the Quaker Oats plant in their jurisdiction has ceased production permanently.

"After a detailed review, we determined that meeting our future manufacturing needs would require an extended closure for enhancements and modernization," PepsiCo's Quaker Oats said in a statement about the discontinuation of production in Danville. "To continue the timely delivery of Quaker products trusted by consumers since 1877, we determined production would need to permanently shift to other facilities."

Loss of Jobs at Quaker Oats Factory

WAND TV reported earlier that the closure of the Quaker Oats plant in the said area has instantly resulted in the loss of more than 500 employees. The company said it is aware of the effects the factory closure will have on its employees, their families, and the Danville community.

The company added that it has already notified its workforce regarding the layoffs. Quaker Oats works closely with employees and Danville officials to offer "a supportive transition." The chairman of the Vermilion County Democratic Party, Mickensy Ellis-White, also released a statement expressing support for workers who were displaced by the Quaker Oats plant shutdown.

"The Vermilion County Democratic Party is in solidarity with the workers and their families employed by Quaker Oats," Ellis-White said. "While we await details, we are reaching out to our State and Federal representatives to assess the situation and determine what assistance can be given to the employees and their families."

Meanwhile, PepsiCo will continue to pay the salaries of Quaker Oats workers until June 8. City Mayor Ricky Williams Jr. said that the production plant will also officially close on that date.

Photo by: amber.kennedy/Flickr (CC BY-SA 2.0)