Campbell's Shutters Historic Cape Cod Chip Plant, Cutting 49 Jobs in Cost-Cutting Move
Campbell's Shutters Historic Cape Cod Chip Plant, Cutting 49 Jobs in Cost-Cutting Move
In a move underscoring ongoing pressures in the packaged food sector, Campbell Soup Company announced the closure of its Hyannis, Massachusetts snack manufacturing plant. The facility, which has produced Cape Cod potato chips since 1985, will cease operations by April, resulting in the loss of 49 jobs.
The decision, framed by the company as a necessary step to streamline operations, highlights the challenges facing legacy food brands as consumer habits shift and operational costs rise. Campbell's stated the Hyannis plant, responsible for approximately 4% of Cape Cod chip production, "no longer makes economic sense for the business." Production will be consolidated at existing plants in Beloit, Wisconsin; Charlotte, North Carolina; and Hanover, Pennsylvania.
"This difficult decision reflects a careful assessment of our business needs to strengthen our operations and position our snacks business for long-term growth," said Elizabeth Duggan, President of Campbell's Snacks Division. The company confirmed it will provide separation benefits and job placement support for affected workers.
The closure follows a period of lackluster performance for Campbell's snacks portfolio, which includes brands acquired in its 2018 Snyder's-Lance purchase. Recent quarterly results showed a 2% year-on-year decline in snacks sales to $1.01 billion, with volume falling 3%. While brands like Pepperidge Farm cookies saw gains, the Cape Cod, Snyder's of Hanover pretzels, and Goldfish crackers segments underperformed.
Analysts suggest the move is part of a broader industry trend of consolidation as companies grapple with inflationary pressures and seek to optimize manufacturing footprints. The Hyannis site is expected to be sold.
Voices from the Community
Michael Torres, Small Business Owner in Hyannis: "It's a gut punch for the community. These are good manufacturing jobs that support local families. It feels like another piece of local identity, tied to the Cape Cod brand itself, is being outsourced."
Sarah Chen, Retail Analyst at Franklin Insights: "This is a pragmatic, if painful, operational realignment. The snacks market is intensely competitive, and Campbell's needs to improve margins. Consolidating production into larger, more efficient facilities is a standard playbook response to the volume pressures they've reported."
David R. Miller, Former Plant Employee (1989-2010): "It's corporate greed, plain and simple. They bought the brand, squeezed what they could from it and this historic plant, and now they're tossing the workers aside for a few extra points on a spreadsheet. They talk about 'long-term growth' but destroy livelihoods in the short term."
Lisa Rodriguez, Food Industry Consultant: "The strategic rationale is clear, but the human cost is real. The success of the transition will depend heavily on how effectively Campbell's supports its displaced workforce and maintains the quality and brand essence of Cape Cod chips, which are deeply associated with that Massachusetts origin story."