Abbott Laboratories has given notice that it will be closing its Fairfield location later this year, meaning the loss of nearly 200 jobs.
A Worker Adjustment and Retraining Notification has been filed with the state, indicating that 195 employees will be laid off and the plant will be closed. Founded in 2004, the Illinois-based health and nutrition manufacturing company — known for brands including Similac infant formula, Pedialyte electrolyte drinks and Ensure shakes — also manufactures human and veterinary prescription drugs.
In its most recent earnings report, the company indicated a 1.5 percent sales growth in the fourth quarter of last year, noting that “organic sales growth for the underlying base business increased 11.0 percent.” The business found itself down in sales by 8.1 percent across the year, however, which it attributed to an “anticipated decline in COVID-19 testing-related sales.”
The company also operates a nutrition faculty in Sturgis, S.D. and and is building a new facility in Bowling Green, Ohio.
“The strength and diversity of the Abbott portfolio drove our success in 2023,” said Robert B. Ford, chairman and chief executive officer of Abbott in a news release on the company’s year-end numbers. “We’re entering 2024 with a lot of positive momentum, and with our highly productive pipeline, we’re well-positioned for growth in 2024 and beyond.”
Fairfield Mayor Cathrine Moy said she got the WARN letter about a month ago, and the city has been in contact with the company, but she made clear there is never a good time for layoffs to happen.
“We have been assured by the company that it is offering jobs elsewhere,” she said, “that it will be a smooth transition.”
Abbott indicated that it will be discontinuing the sort of nutritional bar made in Fairfield, Moy said, but the city has not been given any explanation on the closing of the plant. With inflation still hurting pocketbooks across the country, Moy said, this is a particularly tough time for the city to endure this.
“People in Fairfield, since inflation began in earnest, they’re paying $1000 more a month to live and, their wages have not gone up, and now there are layoffs?” she said. “It’s untenable.”
And despite the work that Abbott has done to soften the blow for some employees, Moy said she can’t help but feel frustrated that the company is making this decision now.
“I feel like large companies like this sometimes just don’t give a rip about the people who are putting their foot to the pedal and doing the actual work.”
Moy said city staff do not believe that the layoffs are the sign of a larger trend, and they are bullish on future manufacturing development in Fairfield. Still, she said, they are keeping their fingers crossed.
“We’re trying to build up our manufacturing,” she said. “Not lose it,”
Moy said she hopes that a buyer for the plant will soon emerge, similar to the situation that Vacaville faced with the sale of the Genentech plant last year. The entire county is currently focused on increasing economic development and retaining the jobs that already exist here, Moy said, and cities understand the importance of working together on this issue.
“This group of mayors works really closely together,” she said, “we’re a close group and try to work together”
