Snack Manufacturer to Lay Off Hundreds Following Texas Factory Closure
A leading U.S. snack manufacturer has announced a major restructuring of its operations, with layoffs planned at one of its largest production hubs in Texas.
The move, which affects hundreds of employees, has reignited concerns about factory closures and shifting manufacturing priorities across the region.
The Industry Context
The snack industry has seen intense cost pressures in recent years, with manufacturers consolidating operations to keep pace with changing consumer demand and retailer expectations. Companies are now optimizing production to focus on core brands and private-label clients, even if it means job losses in long-standing local facilities.
A Sudden Announcement
Employees at the El Paso facility were notified that Flagstone Foods, the Minnesota-based maker of snack nuts and private-label products, would be winding down a large part of its operations in the city. The decision came just two years after Flagstone announced expansion plans at the same site, leaving many workers blindsided by the sudden reversal.
The Scale of the Layoffs
According to the company, 225 workers will lose their jobs by the end of 2025, marking one of the largest industrial layoffs in El Paso this year. Flagstone said the affected employees will receive severance pay and job placement assistance, while 139 workers will remain to maintain scaled-down production of core products, as reported by KFOX-TV.
Why It Happened
The company is transferring parts of its snack production to facilities in North Carolina and Alabama, aiming to “optimize reliability and efficiency” for its private-label clients.
CEO Larry Appel explained that changing consumer preferences and cost structures forced a reallocation of resources. “We must evolve in this direction to best serve our customers,” Appel said in a statement shared with Yahoo News.
The Local Impact
The layoffs come at a difficult time for the region. El Paso County’s unemployment rate was 4.5% in August, slightly above the national average, according to the Federal Reserve Bank of Dallas. Local leaders fear the shutdown could ripple through the supply chain and neighboring small businesses that depend on the plant’s activity.
A Missed Expansion
Adding to the frustration is that Flagstone had previously promised to expand its El Paso footprint. In 2023, the company announced a $28.2 million upgrade to its processing and distribution complex and was approved for $1.24 million in tax rebates from the city and county.
However, the agreements were never finalized, and no funds were received, according to local officials cited by the El Paso Times.
What Remains
While production of private-label goods will shift elsewhere, the El Paso site will now focus solely on Emerald Nuts, a brand Flagstone acquired in 2023 from Campbell Soup Co. The company described the facility as the new “Emerald Nuts Center of Excellence,” signaling a narrowed but continued presence in Texas, as first noted by the Houston Chronicle.
The Bigger Picture
Industry experts note that this kind of restructuring is becoming more common as U.S. food manufacturers balance automation, brand consolidation, and shifting consumer demand. Flagstone’s move underscores how even profitable operations can become vulnerable in an era of efficiency-driven corporate planning.
When Expansion Turns Into Retrenchment
What began as a story of growth for Flagstone Foods has turned into one of retrenchment. As hundreds of El Paso workers face an uncertain future, the company insists it is adapting to market realities. But for the city that once celebrated its expansion, the closure stands as a reminder of how fragile industrial promises can be in a rapidly evolving food economy.
