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Published on April 15, 2024
Abbott Laboratories to Close Fairfield Plant, Nearly 200 Workers to Be Laid Off Amid Cost-Cutting EffortsSource: Google Street View

Health giant Abbott Laboratories has declared it will shutter its Fairfield facility – a decision resulting in the dislocation of almost 200 workers. The Illinois-based powerhouse, responsible for commonly consumed brands such as Similac and Ensure, intends to initiate layoffs on May 18, transitioning through September, the company revealed in correspondence with state and local authorities.

The closure, hitting a site described in regulatory filings as one of Abbott's "priority manufacturing plants," aligns with the scrapping of Abbott's ZonePerfect protein bars, as confirmed by the company on March 20 via Instagram. Divisional vice president for employee relations, Sarah Chomiak, characterized the choice to close as "difficult" and necessitated by the compulsion to achieve "significant reductions in costs", according to an SF Chronicle report.

Despite the Fairfield setback, Abbott's footprint continues to spread in other regions. Alongside a nutritional facility in Sturgis, Michigan, the conglomerate is laying the groundwork for a new establishment in Bowling Green, Ohio. The Fairfield site's dissolution marks a contrast with the company's recent statement of "entering 2024 with a lot of positive momentum," revealed Robert B. Ford, chairman and chief executive officer, in a news release on the company’s year-end financials, per Mercury News.

Fairfield Mayor Cathrine Moy expressed the emotional and economic toll of the decision, pointing out the staggering rise in living costs faced by local residents amidst persistent inflation. "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 told Mercury News. Moy alluded to the silent devastation suffered by the workforce, lamenting that "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."

The city has already begun to pivot in hopes of attracting a new buyer for the soon-to-be-vacant plant. Moy, reflecting on a similar situation resolved by the sale of Vacaville's Genentech plant last year, remains optimistic. The mayor detailed the unified thrust among county mayors to bolster economic development and safeguard existing jobs, asserting, "This group of mayors works really closely together ... we’re a close group and try to work together," she emphasized in her conversation with Mercury News.