Blue Bell Announces Cost Cutting, Lays Off ,1400 Employees

Faced with a tough financial situation after its products tested positive for listeria earlier this year, Blue Bell Creameries announced lay-offs Friday.

Nearly 37 percent of its workforce or 750 full-time employees and 700 part-time employees will be laid off as part of cost-cutting measures the company plans to implement before it starts production again. Additionally, 1,400 employees will be furloughed, the company announced.

"The agonizing decision to lay off hundreds of our great workers and reduce hours and pay for others was the most difficult one I have had to make in my time as Blue Bell's CEO and President. At Blue Bell, our employees are part of our family, and we did everything we could to keep people on our payroll for as long as possible. At the same time, we have an obligation to do what is necessary to bring Blue Bell back and ensure its viability in the future. This is a sad day for all of us at Blue Bell, and for me personally," said company's CEO and President Paul Kruse.

The company also announced pay cuts for employees in the clean-up operations.

Blue Bell signed voluntary agreements with the Texas Department of State Health Services and Oklahoma Department Agriculture, Food and Forestry, outlining the steps it would take before its products return to the market.

The agreements require the company to identify the source of the infection, revising safety protocols and also testing its products before they are made available to the consumer again.

Blue Bell issued a recall of its products in March this year after five cases of listeroisis in Kansas were attributed to its products. Its facility in Brenham, Texas later showed bacterial contamination.