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Nestlé said it will close a factory in Solon, Ohio, by the end of 2027 as it aims to respond to changing consumer needs and shifts in product volume.

The Lean Cuisine and Hot Pockets manufacturer said pouch production for its foodservice business will transition to its Gaffney, South Carolina, factory. The move will take place gradually during the coming months, with production in Solon expected to conclude by the third quarter of 2027 and the factory expected to close by the end of 2027. 

Nestlé did not say how many employees will be affected by the closure. The company plans to file a WARN notice around March. 

“As customer needs and volumes evolve, we determined that building on capabilities already in place elsewhere in our network was the most sustainable path forward,” Nestlé said in a statement. “We understand that this decision is difficult, not only for employees, but also for the community members who have deep ties to the Solon factory.”

Nestlé noted the Switzerland-based company has a long-standing presence in Ohio, with nearly 3,000 employees across seven facilities. The food giant said the broader Solon campus is not closing and will continue to house R&D, corporate operations and multiple Nestlé businesses. 

Nestlé previously announced in 2024 that it planned to lay off 216 workers from its Solon factory. At the time, the location employed 780 people.   

Executives at the world's largest food company have recently said they were “not happy” with the company’s performance in North America.

Nestlé CFO Anna Manz recently said at a Barclays conference that “more needs to be done” to improve execution in the region. The finance chief said creamers and its infant and child brand Gerber are two areas that are “underperforming,” while frozen food is seeing slower growth across the category. 

Food and beverage manufacturers across the U.S. have been actively closing facilities in an effort to improve the efficiency of their networks, lower costs and bring supply in line with consumer demand that has fallen amid elevated prices. PepsiCo, Tyson Foods, JBS, Danone and Mars have all announced plans to close facilities this year.