(Bloomberg) – Blue Bell Creameries Inc., the ice cream company linked to a listeria outbreak that killed three people, will furlough or fire almost 3,000 workers after it had to shut down most production.
About 1,400 employees will be furloughed and an additional 1,450 part- and full-time workers will be laid off, the Brenham, Texas-based company said in a statement Friday. Blue Bell also is cutting salaries as it tries to bounce back from an incident that forced it to recall 8 million gallons of ice cream. The company's total staff numbered 3,900.
"The agonizing decision to lay off hundreds of our great workers and reduce hours and pay for others was the most difficult one I have had to make in my time as Blue Bell's CEO and president," Paul Kruse said in the statement. "We have an obligation to do what is necessary to bring Blue Bell back and ensure its viability in the future."
Blue Bell recalled all of its products last month following an earlier recall of some of its ice cream. At least 10 people in four states have been sickened by the tainted products, and three died after eating ice cream served by a Kansas hospital. At least four other ice cream companies have recalled products in recent months after detecting the bacteria.
The Food and Drug Administration found 26 total violations at Blue Bell's facilities during inspections from March through this month, the agency said in reports.
Employees didn't wash their hands after touching dirty surfaces, had soiled uniforms that came in contact with food containers, and used lax sanitary practices around shoes and beards, the FDA said.
Company testing of non-food contact areas at a facility in Oklahoma also turned up signs of listeria as early as 2013.
–With assistance from Matt Townsend in New York.
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