Amy’s Kitchen details plans for job cuts, plant closure in San Jose: state report
SAN JOSE — Amy’s Kitchen has formally notified the state labor agency about its plans to permanently close its San Jose production center, a shutdown that will erase 331 jobs, the company said in an official filing.
The facility, located at 1885 Las Plumas Ave. in San Jose, ceased manufacturing operations on July 18, according to a WARN notice that the company filed with the state Employment Development Department.
“Like many companies, Amy’s Kitchen has faced significant challenges in the last year,” Fred Scarpulla, acting chief operations officer with Amy’s Kitchen, wrote in the WARN notice filed with the EDD. “Increased costs, shifts in demand, and supply chain disruptions have created significant hurdles for us and other organizations.”
Amy’s Kitchen had previously disclosed to this news organization its plans for cutting an estimated 300 jobs. The WARN notice, however, represented the first time that the company precisely detailed the number of jobs that are being lost.
“Amy’s intends to close its entire San Jose plant on September 16, 2022,” the company stated in the WARN notice. “All 331 employees at this location are affected.”
The largest category of affected employees was listed as manufacturing workers, with a loss of 173 positions, the WARN notice stated. Manufacturing operators represented another 65 lost jobs.
“As Amy’s has faced the headwinds of this economic environment, we have seen an unsustainable $1 million monthly operating loss for our San Jose plant,” the company stated in the WARN notice.
Bay Area unions have filed two unfair labor practices against Amy’s Kitchen.
These consist of a complaint on June 1 linked to the San Jose production center, according to the National Labor Relations Board website, and another complaint on July 11 regarding the company’s Santa Rosa production center.
Unite Here has been attempting to unionize workers at the San Jose production center and the International Brotherhood of Teamsters Union has been attempting to organize workers in Santa Rosa.
“Amy’s Kitchen workers in Santa Rosa have joined forces with the Teamsters in calling for safer working conditions, better health coverage and a living wage on the job,” according to an online petition in connection with a labor-linked day of action that occurred on June 25.
The NLRB filing in connection with the San Jose plant claimed that “coercive actions” occurred at the South Bay production center.
“Amy’s is not a union facility and no bumping rights exist,” the company stated in the WARN notice.
The company will wind down operations over the next two months.
“Employees who have been with the company for less than two months will receive their final pay on Aug. 17, 2022, and benefits through August 31, 2022,” Amy’s Kitchen stated in the WARN notice. “Employees who have been with the company longer than two months will receive their final pay on Sept. 16, 2022, and benefits through Sept. 30, 2022.”
People who continue to work to assist with winddown operations will be offered an additional “stay bonus,” Amy’s said.
“We are also supporting our employees with transfer and relocation options and job placement services,” the company stated in the WARN notice.
The company’s food factory in San Jose, which focused primarily on the production of frozen pizzas, began manufacturing operations in March 2021.
“We do not take this decision lightly and will support our employees in the transition in every way possible,” Scarpulla stated in the WARN letter. The move to permanently close the San Jose plant, he stated, was a “difficult decision.”