In Connell, Washington, a notable development has occurred with Lamb Weston Holdings, announcing the impending layoff of 379 workers at its potato processing facility. This decision is poised to have a considerable economic impact on the local community, with Mayor Lee Barrow highlighting a projected $500,000 shortfall in the community's annual budget of approximately $20 million. "But our biggest concern are those displaced workers," Barrow expressed, underscoring the surprise and concern shared by the community upon receiving the news.
Lamb Weston, headquartered in Eagle, Idaho, stands as a global leader in the production and processing of a variety of frozen potato products. The layoffs, set to commence on November 30, are anticipated to affect not just Connell but also the surrounding regions, with about two-thirds of the affected employees residing locally. The city's water utility, significantly reliant on the plant for revenue, faces financial uncertainties following the plant's closure.
The company's recent financial forecast indicates a downturn, with expectations of decreased net sales, income from operations, and net income in the upcoming fiscal quarter. Tom Werner, Lamb Weston's President and CEO, attributed these challenges to a reduced demand for frozen potatoes, leading to strategic decisions aimed at enhancing operational efficiency, including the closure of the Connell facility.
Despite efforts, the city has yet to establish communication with Lamb Weston officials regarding the future use of the site. Mayor Barrow remains hopeful for a potential industry replacement or a revival of operations, emphasizing the city's willingness to engage with Lamb Weston to explore feasible solutions.
Source: The Spokesman-Review