Blue Diamond Growers plans to close Sacramento plant

Blue Diamond Growers will shut down its historic midtown Sacramento manufacturing plant over the next two years, affecting about 600 workers.

The almond cooperative, headquartered in Sacramento, said it will move most of its manufacturing to facilities in Turlock and Salida, bringing operations closer to its grower-members. The phased closure is scheduled to begin in September 2025 and wrap up by September 2026.

“The challenges of running a plant from these historical buildings has become too costly and inefficient,” said Kai Bockmann, president and CEO of Blue Diamond Growers, in a statement. “Streamlining our manufacturing plants is the right business move to further strengthen our market-leading position and bring increased value to our grower members.”

Founded in 1914, the C Street facility has been a cornerstone of Sacramento’s industrial landscape and one of its larger private employers. The 50-acre site will be vacated in three phases: the first round of layoffs in September, a second in March 2026 and the final in September 2026, according to a layoff notice filed with the state of California.

The company said about half of the plant’s 632 employees will remain on the payroll until the last phase. Corporate staff not associated with the facility are not included in the layoff plan.

Bockmann told employees about the closure plans in a meeting last week. “Even though most employees will not leave this year, we want to be transparent and tell our people as soon as possible,” he said in the statement.

Blue Diamond will offer incentives for employees who stay through the transition and provide severance packages for those laid off. Some workers may be offered roles at other company locations.

While the midtown facility is closing, Blue Diamond’s corporate headquarters will remain in Sacramento. The company said the closure is necessary to sustain long-term operations for the benefit of the almond growers who own the cooperative.