September 27, 2012

Rats fleeing the sinking ship - California

Shutdowns as companies move their production to less taxed states. From Sacramento television CBS affiliate:
Campbell Soup Shutting Down Sacramento Plant; 700 Jobs Being Cut
The Campbell Soup plant in Sacramento is closing as of July 2013 as the company says it is taking steps to “improve supply chain productivity,” according to a company release.

Employees were told of the closure during a 6 a.m. meeting Thursday at the plant.

“We employ about 700 people at the Sacramento plant and unfortunately those jobs will be eliminated,” said Campbell Soup Company spokesperson Anthony Sanzio. “This is a tough day for the company, for the employees. No one likes to do this.”
A bit more:
Most of Sacramento’s production of soup, sauces and beverages will be shifted to Campbell’s three remaining thermal plants in North Carolina, Ohio and Texas.
Don't know about Ohio but I know that N. Carolina and Texas are very business friendly states. More:
Campbell does have several other facilities in California that will remain open. There are about 450 full-time and seasonal employees at its tomato processing plants in Dixon and Stockton. They also own Bolthouse Farms in Bakersfield.
Those facilities perforce have to be close to the source of supply. No other way around that. And the story is not over yet -- from the same station comes this report:
Comcast To Close 3 Northern California Call Centers; Shift 1,000 Jobs Out Of State
Comcast announced Tuesday it will close all three of its call centers in Northern California because of the high cost of doing business in the Golden State.

Comcast will close its call centers in Natomas, Livermore and Morgan Hill.

“Comcast arrived at this decision after thoughtfully and methodically studying the market and our potential options. We determined that the high cost of doing business in California makes it difficult to run cost-effective call centers in Northern California,” said Andrew C. Johnson, Comcast regional vice president.

According to Comcast, 1,000 Comcast employees, including 300 in Natomas, will see their jobs shifted to the other centers. For employees who don’t want to relocate, Comcast says they will be provided with severance benefits and outplacement assistance. They have until Oct. 1 to notify the company of their decision.
And of course, California will just jack up the taxes even more to compensate for the loss of revenue. Posted by DaveH at September 27, 2012 5:34 PM

In regards to Comcast, the employees should take the option to relocate and get out of California while they still can. At least they know they have a job waiting for them when they go.

Posted by: DCE at September 30, 2012 5:48 AM
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