California food manufacturer lays off 228 workers following bankruptcy

Another food manufacturer is cutting hundreds of jobs as financial pressures continue to reshape the food and beverage industry.

FreshRealm, a producer of fresh prepared meals and the exclusive manufacturer of Blue Apron meal kits, permanently closed ts Tracy, California, production facility, resulting in 228 layoffs, according to a Worker Adjustment and Retraining Notification (WARN) filing submitted to the state. The layoffs took effect on June 27 after the company notified employees in late April.

Bankruptcy drives restructuring

The layoffs come after FreshRealm filed for Chapter 11 bankruptcy protection as it works to restructure its business and evaluate strategic alternatives. The company said it intends to continue operating during the bankruptcy process while pursuing a sale of its assets and maintaining service for existing customers.

FreshRealm supplies fresh meals to retailers and has been the exclusive producer of Blue Apron’s meal kits. However, the company has faced mounting financial challenges following a series of food safety issues in 2025. A nationwide listeria-related recall led Walmart, one of FreshRealm’s largest customers, to end its relationship with the company, creating a significant loss of revenue.

Part of broader nationwide cuts

The Tracy closure is only one piece of FreshRealm’s larger restructuring effort. WARN notices filed across several states show the company has announced more than 1,500 job cuts nationwide as it closes or scales back operations in California, Texas, New Jersey, Indiana, and Georgia.

The latest layoffs underscore the continued challenges facing food manufacturers as they navigate higher operating costs, shifting consumer demand, and the lasting financial impact of product recalls. While FreshRealm hopes its bankruptcy process will stabilize the business, the closure of its Tracy facility marks another significant loss of food manufacturing jobs in California.

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