Food manufacturing layoffs mount in 2026 as major companies cut jobs and close facilities

The food manufacturing industry is facing another difficult year as several major companies announce layoffs, plant closures and restructuring efforts aimed at reducing costs and improving efficiency. From global food giants to iconic American brands, thousands of workers have been affected as manufacturers grapple with changing consumer habits, inflationary pressures and slowing demand in some categories.

Nestlé leads the industry’s largest workforce reduction

The biggest food manufacturing workforce reduction impacting 2026 is Nestlé’s plan to eliminate 16,000 jobs globally over a two-year period. The cuts represent nearly 6% of the company’s workforce and include approximately 4,000 manufacturing and supply-chain positions.

Company leaders say the move is part of a broader effort to streamline operations, improve productivity and reduce costs as the world’s largest food company undergoes a major restructuring under new leadership.

Del Monte closures impact hundreds of workers

Del Monte Foods has also been hit by significant job losses following its bankruptcy and asset-sale process. The company announced the closure of its Modesto, California, fruit-processing facility, affecting roughly 600 full-time employees and as many as 1,200 seasonal workers during harvest periods.

The closure comes after Del Monte’s restructuring and sale to new ownership, ending decades of operations at one of California’s most recognizable food-processing sites.

Other manufacturers also reducing staff

Cheese producer Leprino Foods announced layoffs at its Lubbock, Texas, facility as part of operational changes, adding to the growing list of food manufacturers trimming workforces this year. The company, one of the world’s largest mozzarella producers, cited business needs and efficiency improvements behind the reductions.

Industry analysts say many food manufacturers are increasingly turning to automation, facility consolidation and cost-cutting measures as they adapt to changing consumer demand and higher operating expenses. While the scale of layoffs varies by company, the trend underscores the ongoing challenges facing the sector in 2026.