Historic California fruit plant closure leaves 765 workers without jobs after bankruptcy

One of California’s largest food industry layoffs of 2026 became official in April when Del Monte Foods permanently closed its historic Modesto fruit processing plant, eliminating 765 jobs after a months-long bankruptcy and asset sale process.

The closure marked the end of operations at a facility that had processed peaches, pears and apricots for more than a century, sending shockwaves through the Central Valley’s agricultural economy. The plant also served as a major buyer for local fruit growers, raising concerns that the impact would extend well beyond the company’s workforce.

Bankruptcy set the closure in motion

The timeline began on July 1, 2025, when Del Monte Foods filed for Chapter 11 bankruptcy protection while seeking a buyer for its business. As the restructuring moved forward, the company announced in January 2026 that its Modesto cannery would close because no purchaser agreed to continue operating the facility. 

Union officials said the shutdown would affect roughly 600 year-round employees and hundreds of seasonal workers who depended on the annual harvest.

In the weeks that followed, WARN notices outlined the coming layoffs, with employee separations scheduled to begin in early April as the plant prepared to cease operations.

Hundreds of layoffs became official in April

The closure became reality on April 7, 2026, when Del Monte officially shut down the Modesto facility and laid off 765 employees, making it one of California’s largest food manufacturing job losses this year.

Beyond the immediate layoffs, industry experts say the closure could have lasting consequences for California’s fruit industry. Without one of the region’s largest processors, many growers have been forced to rethink future harvests and orchard investments.

While Del Monte’s assets have since been sold through the bankruptcy process, the Modesto cannery remains closed, bringing an end to one of the state’s longest-running food processing operations and leaving hundreds of workers searching for new opportunities.

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