1,450 Blue Bell workers losing jobs after listeria problems

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Blue Bell Is Recalling All of Its Products

HOUSTON (AP) -- Blue Bell Creameries will lay off more than a third of its workforce following a series of listeria illnesses linked to its ice cream that prompted a nationwide recall of all its products, the Texas company announced Friday.

The company, whose production plants remain closed, said 750 full-time employees and 700 part-time workers are losing their jobs. That represents about 37 percent of its 3,900 employees.

Another 1,400 workers will be furloughed but will be still receive a substantial portion of their current pay. Employees essential to the ongoing cleanup and repair efforts will continue working but have their pay reduced, Blue Bell said.

The company's production plants in Texas, Oklahoma and Alabama have been closed since Blue Bell issued a full recall in April, after more of its products tested positive for listeria. The company's ice cream has been linked to 10 listeria illnesses in four states, including three deaths in Kansas.

Blue Bell CEO and President Paul Kruse called the decision to layoff and furlough workers the "most difficult one I have had to make" as head of the company.

"At Blue Bell, our employees are part of our family, and we did everything we could to keep people on our payroll for as long as possible. At the same time, we have an obligation to do what is necessary to bring Blue Bell back and ensure its viability in the future. This is a sad day for all of us at Blue Bell, and for me personally," Kruse said.

The layoffs come after the company signed agreements on Thursday with health officials in Texas and Oklahoma detailing steps the company will follow to resume production of ice cream products. No timeline has been set for when Blue Bell will resume production.

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Blue Bell, Jeni's Splendid Listeria
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1,450 Blue Bell workers losing jobs after listeria problems
OVERLAND PARK, KS - APRIL 21: A Blue Bell Ice Cream truck is seen outside a Wal-Mart store after Blue Bell Creameries recalls all products following a Listeria contamination on April 21, 2015 in Overland Park, Kansas. (Photo by Jamie Squire/Getty Images)
OVERLAND PARK, KS - APRIL 21: Shelves are bare and signs are posted where Blue Bell products were displayed in a grocery store on April 21, 2015 in Overland Park, Kansas. Blue Bell Creameries recalled all products following a Listeria contamination. (Photo by Jamie Squire/Getty Images)
A sign in the window at a Jeni's Spendid Ice Creams shop tells customers the store is closed Friday, April 24, 2015, in Atlanta. Jeni's Splendid Ice Creams has issued a widespread voluntary recall on all flavors of its Ohio-made ice creams, frozen yogurts, sorbets and ice cream sandwiches and closed all of its retail scoop shops because of possible contamination with potentially fatal Listeria monocytogenes.(AP Photo/John Bazemore)
We have initiated a voluntary recall of all our ice creams, frozen yogurts, sorbets, and ice cream sandwiches. https://t.co/JUOXA4JT0e
A sign on a window of the door on the left at a Jeni's Splendid Ice Creams states that the store is closed Friday, April 24, 2015, in Chagrin Falls, Ohio. Major recalls from two well-known ice cream companies due to the discovery of listeria bacteria raise questions about how the pathogen could have contaminated multiple ice cream manufacturing plants and whether the discoveries are related. Blue Bell Creameries of Texas and Jeni's Splendid Ice Creams of Ohio, extremely popular brands in their home states took all their products off shelves this week. (AP Photo/Tony Dejak)
FILE - In this April 24, 2015 file photo, a sign on a window at a Jeni's Splendid Ice Creams states that the store is closed, in Chagrin Falls, Ohio. CEO John Lowe said in a Tuesday, April 28, 2015 statement that Jeni's is destroying more than 265 tons of ice cream after listeria was found in the production facility and in products last week. (AP Photo/Tony Dejak, File)
Blue Bell ice cream stands for sale on a grocery store shelf in Lawrence, Kan., Friday, April 10, 2015. (AP Photo/Orlin Wagner)
Blue Bell delivery trucks are parked at the creamery's location in Kansas City, Kan., Friday, April 10, 2015. Days after a foodborne illness was linked to Blue Bell ice cream products, a state inspection of an Oklahoma plant later tied to the infection praised the facility for having no violations and doing a "great job," according to a copy of the inspection report. Tainted Blue Bell ice cream products have sickened eight people — five in Kansas and three in Texas. (AP Photo/Orlin Wagner)
Five people in Kansas have become ill, three have died, as part of a potential listeriosis outbreak, possibly connected to eating Blue Bell Creameries ice cream at a hospital, according to the Center for Disease Control and Prevention and the Kansas Department of Health and Environment.
This photo shows a container of Blue Bell ice cream Friday, March 13, 2015, in Dallas. The deaths of three people who developed a foodborne illness linked to some Blue Bell ice cream products has prompted the Texas icon’s first product recall in its 108-year history. (AP Photo/Kim Johnson Flodin)
This photo shows a container of Blue Bell ice cream Friday, March 13, 2015, in Dallas. The deaths of three people who developed a foodborne illness linked to some Blue Bell ice cream products has prompted the Texas icon’s first product recall in its 108-year history. (AP Photo/Kim Johnson Flodin)
This photo shows a container of Blue Bell ice cream Friday, March 13, 2015, in Dallas. The deaths of three people who developed a foodborne illness linked to some Blue Bell ice cream products has prompted the Texas icon’s first product recall in its 108-year history. (AP Photo/Kim Johnson Flodin)
Graphic shows the number of cases of listeria by state.; 2c x 4 inches; 96.3 mm x 101 mm;
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