Campbell’s, the 150-year-old packaged food company known for its iconic canned soups, is cutting jobs at a Texas manufacturing facility as it restructures operations, amid growing pressure across the retail sector.
In a recent Worker Adjustment and Retraining Notification (WARN) filed with the state of Texas, Campbell’s noted that it plans to lay off205 employees at its soup processing plant in Paris, Texas.
The job cuts come as the company transitions the facility into a flagship sauce production site focused on Prego Italian sauces and Pace salsa, two of Campbell’s major brands.
As part of the shift, which Campbell’s first announced in July 2024, the soup supply company will conduct a mass layoff affecting more than one-third of its employees at the Paris plant.
The sauce facility requires a smaller workforce, and the resizing will thus result in the removal of 205 of the 568 existing employees.
The layoffs are scheduled to occur in phases, beginning May 1, 2026, when soup production at the Paris facility will stop, and continue through mid-August.
According to the WARN filing, nearly 500 employees at the Paris facility are represented by United Food and Commercial Workers Local 540.
Of this, Campbell’s expects 194 union positions to be eliminated, although 18 workers may be able to move into other open roles at the facility. Additionally, workers who remain with the company through their release dates may qualify for severance or separation benefits.
Retail pressure weighs on Campbell’s
The restructuring comes as Campbell’s faces mounting pressure in the consumer goods sector.
The company reported a 3% decline in net sales to $2.7 billion in its Q1 2026 earnings. Its adjusted Earnings Per Share (EPS) also decreased 13% to $0.77.
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Simultaneously, it entered into an agreement to acquire a 49% stake in La Regina, producer of Rao’s tomato-based pasta sauces, solidifying its longstanding partnership with La Regina.
Adjusted gross profit margin decreased to 29.6% from its earlier 31.3%; the company cited tariff impacts and supply chain costs as major drivers.
Campbell’s intends to use its $160 million in savings, part of its longer-term plan to save up to $375 million by 2028, helping offset tariff headwinds.
The company is set to report its Q2 2026 earnings on Wednesday, March 11.
Ahead of the report, the company’s stock fell to $24.94 on Tuesday, March 10, its lowest in 52 weeks, and is down 40% year over year.
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Campbell’s, broader retail industry face headwinds
The challenges facing Campbell’s reflect broader shifts in the retail and consumer products sector.
According to Deloitte’s retail outlook, inflation, tariffs, and economic uncertainty are expected to weigh on consumer purchasing in 2026, making shoppers more price-sensitive and focused on discounts and value.
Based on the research, executives anticipate higher costs in 2026 due to changes in global trade policies, but remain optimistic that an increase in the free shipping threshold and shifting the product mix to higher-margin or value-added items can help offset some costs.
They also anticipate shifting capital allocation towards more profitable ventures, adjusting investment priorities.
Analysts cautious ahead of Campbell’s earnings
Wall Street has grown increasingly cautious on Campbell’s ahead of its upcoming earnings report, citing slowing sales trends and continued pressure in the snack category.
Piper Sandler recently lowered its price target to $28 from $34, while maintaining a neutral rating on the shares, noting continued pressure on retail volumes that create a tough working environment for Campbell’s. This may mean the soup supplier has to make price adjustments like its peers or increase brand spending to support demand.
Morgan Stanley analyst Megan Alexander Clapp also lowered the price to $27 from $28, keeping an equal weight rating, expecting organic sales growth below consensus but EPS in line. With the improvement in the snack business unclear, the firm expects Campbell’s to temper its second-half outlook.
UBSalso lowered its price target from $26 to $24, keeping a sell rating. The firm noted that Campbell’s has already lowered estimates below the Street consensus, reflecting weak snack trends, competitive pressure, and cautious sentiment around top-line growth.
Along with this restructuring, Campbell’s is also reshaping its supply chain leadership. The company recently appointed Cassandra Green as its new chief supply chain officer.
Reporting directly to the president and CEO, Green will manage customer logistics, procurement, manufacturing operations, planning and operations, and supply chain category leadership.
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