Snack-maker Nestle USA Inc. plans to close its sales and supply-chain operation on the near-south side of Indianapolis by the end of the year, resulting in the loss of 172 jobs.
The first round of layoffs at the facility at 1300 S. Keystone Ave. is expected to occur on Nov. 1, and separations could continue through Dec. 31, according to a filing by Nestle USA and Nestle Dreyer’s Ice Cream Co. to state officials.
The move is part of the firm’s previously announced plans to reorganize its supply chain from what it termed a “direct-store-delivery network” for its pizza and ice cream products to a warehouse model.
The job losses—51 in sales and 121 in supply-chain operations—are expected to be permanent.
In May, Nestle announced that it planned to close eight company-owned frozen distribution centers and its frozen inventory transfer points. It did not identity any of the facilities at that time.
“This change will leverage the highly efficient warehouse network that Nestlé already uses for its frozen meals and snacks, which will enable the company to better meet the needs of retail customers and consumers,” according to a company release dated May 7.
“Moving to a warehouse model has numerous benefits for us and our retail customers,” Nestle CEO Steve Presley said in the release. “By taking advantage of the unmatched breadth and depth of our existing frozen warehouse network, our retail customer partners can better leverage their existing networks. This change is a win-win for Nestlé and our customers.”
On Aug. 23, Nestle notified state officials that it planned to lay off dozens of employees at a similar distribution operation in Fort Wayne by the end of the year due to a restructuring.