Major grocery chain to close 60-year-old California bakery plant as 92 jobs are affected

A longtime California bakery facility that has supplied Safeway stores for decades is preparing to shut down, ending over 60 years of operations. The planned closure will affect 92 employees as the grocery chain continues to evaluate its business and costs.

Safeway bakery plant to close in December

Safeway plans to permanently close its commercial bread plant at 905 South 34th Street in Richmond, California, according to a Worker Adjustment and Retraining Notification (WARN) filing submitted on October 20. The closure is scheduled for December 20, 2026.

The facility opened in 1965 and has produced bakery products for Safeway for decades. The company has not publicly explained why it is closing the plant or disclosed where Bay Area stores will obtain Safeway-branded bread after production ends.

A limited number of affected employees may be offered other positions within the company, according to Albertsons Companies, Safeway’s parent company. However, the company has not specified how many workers will receive offers or what positions may be available.

Closure comes amid broader company changes

The Richmond shutdown comes as Albertsons reviews its operations and works to address financial challenges. The company has faced pressure from inflation and changing consumer spending, while its proposed merger with Kroger was blocked by regulators in 2024.

Albertsons has also announced plans to review its cost structure and improve business performance. Company executives have discussed further cost reductions, although they have not linked the Richmond plant closure to a specific financial decision.

The bakery shutdown follows other changes to Safeway’s Bay Area operations, including the planned November closure of a supermarket on Bollinger Road in San Jose.

The Richmond plant’s closure will end a longstanding food-production operation in the region, while leaving questions about the future employment of affected workers and the source of Safeway-branded bakery products sold in nearby stores.

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