Across the food manufacturing industry, companies have continued consolidating older plants as operating costs and production efficiency pressures reshape where products are made. In Sacramento, Blue Diamond Growers has now moved into another visible stage of that shift, with new layoffs tied to the long-planned closure of its historic facility. The latest reduction shows the California shutdown is still unfolding more than a year after the company announced it would wind down the site.
Blue Diamond confirms another round of Sacramento layoffs
Blue Diamond Growers cut 31 jobs at its facility at 1802 C Street in Sacramento effective September 4, 2026, according to a California WARN notice filed with the Employment Development Department. The notice lists the action as a permanent closure, making clear the reduction is part of the company’s previously announced plan to shut the Midtown Sacramento plant rather than a temporary slowdown. That latest filing adds to a series of 2026 cuts connected to the same closure.
State WARN records and recent reporting show earlier layoff rounds affected 40 workers on August 7, 56 workers on August 21, and 93 workers on August 28 at the same Sacramento operation. KCRA previously reported that Blue Diamond had also outlined a broader 2026 layoff schedule as the plant moved toward closure, with a major final phase expected during the wind-down. The company first announced the Sacramento closure on June 6, 2025.
At the time of that 2025 announcement, Blue Diamond said the winding down of the plant would take place over roughly 18 to 24 months and affect about 600 employees. The cooperative also said some workers would be offered severance, outplacement support, retention incentives during the transition, and in some cases opportunities to move to other company locations. Blue Diamond’s corporate headquarters, the company said, would remain in Sacramento.
What the closure means in Sacramento right now
The confirmed impact is centered on Sacramento, where Blue Diamond is closing a long-standing manufacturing complex that has been part of the city’s food-processing economy for generations. The facility identified in the WARN filings is the company’s Sacramento plant at 1802 C Street, and each newly reported layoff round this summer has been tied to that same closure process. For local workers, the effect is not theoretical: the job losses are arriving in stages rather than all at once…