Nestlé USA has announced it will no longer manufacture Hot Pockets brand sandwiches at a Chatsworth, Calif., facility that has made them since 1988. Approximately 360 employees will be impacted by this decision. Nestlé will help these employees transition, either to positions in other Nestlé facilities where openings are available, or to eventual employment outside of Nestlé.
Hot Pockets production will be consolidated at another Nestlé facility in Kentucky, which opened in1993 to make the popular sandwiches. The Mt. Sterling, Ky., facility doubled in size in 1996 and its location offers opportunity for further expansion if needed. Nestlé will invest $13 million in the Mt. Sterling facility, and will hire 150 new employees there as the operation converts to a 24 hours/7 days per week schedule.
Nestlé USA’s Chief Technical Officer Martial Genthon said the decision to consolidate production to one location came after exhaustive analysis. “Unlike other manufacturing facilities we operate in California, the Chatsworth facility presents some challenges to our business needs. While the decision to stop manufacturing Hot Pockets at our California facility is a tough one because it affects 360 of our Nestlé employees, it is the right decision for our business. Consolidating to one location will allow us to further improve our level of performance.”