The company told its 700 employees their jobs will not transfer to other manufacturing sites. Anthony Sanzio with Campbell's says the canned-soup plant is no longer needed,"We've had volume declines in U.S. canned soup and the company is focused on new packaging formats beyond the can -so, pouches, tubs, and other things."
Sanzio says sales have been flat in the past year.
Employees were stunned by the news. Retiree Jesse Escobar worked for Campbell's for 36 years. He says he thought the plant might be in trouble, "This friend of mine that's currently employed here -he told me that this past August 1st that Campbell's Soup wasn't going to produce or manufacture chicken noodle. Right there I had a gut feeling. I said, 'Uh oh, that's bad."
It was the second piece of bad employment news in as many days for Sacramento. Comcast announced Wednesday it was moving 300 jobs out of Natomas and 1000 jobs out of California.
California Senate President Darrell Steinberg reacted to the second day of bad job news for Sacramento by defending the state's record of job creation. He says they loss of 1,000 jobs runs contrary to the past year in which the Sacramento Region has added 16,000 jobs, "Campbell's and Comcast are two examples that have nothing to do with the so-called regulatory environment or how California and its government interacts with business. I think these were independent decisions. They've said that. The evidence is very clear the call centers are happily locating and expanding in California."
But, when asked if California is a more difficult place to do business than in the rest of the United States, Comcast's Sanzio said, "What I can tell you is that our cost to produce products in California at a plant here in California are more than at a plant in Paris, Texas. So, you know, I think we'll leave it at that."
Steinberg's office says 300,000 jobs were created in California in the last twelve months, which is twice the rate of job growth in the rest of country.
Campbell's has been in Sacramento for 65 years.