SAN ANTONIO – The pending shutdown of Bimbo Bakeries’ East Side location this fall will result in the layoff of an estimated 138 people - the second most of any layoff in Bexar County so far this year.
Bimbo Bakeries USA, which owns numerous baked goods brands, including Thomas’ and Sara Lee, notified the Texas Workforce Commission and Mayor Ron Nirenberg on Jul. 23 that it planned to shut down its facility on S. Gevers on Oct. 5.
The company said in an emailed statement, “We will transition production to bakeries in our network that are better equipped to support our future growth.”
Of the 10 layoffs announced so far in Bexar County this year, only ABM Industries Inc.’s March layoff of 176 was the largest.
However, ABM’s layoffs resulted from Flowers Baking Company bringing its janitorial services “in-house” and ending its contract with ABM. The staffing service said it expected the bakery to hire the majority of the affected employees.
Trinity University Economics Department Chairman David Macpherson said the Bimbo layoff was more “big for this year.”
“It’s relatively small relative (to) the total size of the workforce in San Antonio. So you’re not gonna have a big impact on the economy,” he said.
In February, Food Business News reported Bimbo’s Mexico-based parent company planned to restructure its North American businesses. Bimbo is also closing — or has already closed — bakeries in New York, New Mexico, Nebraska, and Quebec this year.
Macpherson said Bimbo’s San Antonio layoff appears to be an individual business decision rather than a symptom of San Antonio’s economy.
However, the decision will have a big effect on the 138 individuals working there, at least some of whom are represented by Bakery, Confectionary, Tobacco Workers and Grain Millers International Union.
Workers who have been laid off typically earn less at their next job, Macpherson said, and going to a non-union job could mean an even bigger drop in pay.
Unemployment in Bexar County was up to 4.3% in June 2024, compared to 3.9% a year earlier. It’s the same rate as the United States as a whole and marginally less than Texas.
James Keith, a spokesman for Workforce Solutions Alamo, which helps with training and connecting people to new jobs in its 13-county area, acknowledged Bimbo Bakeries layoff was sizable but said there are still industries coming into the area.
“Now, it may not be the industry that these people are being laid off from, but we are still seeing jobs opening up here and opportunities for people who are interested in transitioning into those fields,” he said.
Bimbo said it was committed to providing its employees with “resources and support to ease their transitions,” but did not specify what those resources were.
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