Roughly 600 employees being laid off in Blue Diamond Growers Sacramento flagship manufacturing plant closure

Monique Danao

Sun, Jun 22, 2025, 6:17 AM 4 min read

Blue Diamond Growers will permanently close its flagship Sacramento processing plant, which will result in the loss of approximately 600 jobs in the region. The 115-year-old company blamed maintenance costs and persistent inefficiencies for the shutdown.

The company will consolidate manufacturing work into its existing facilities in Turlock and Salida, which are located in California’s Central Valley.

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“Our Sacramento team’s work ethic and incredible drive have enabled us to build Blue Diamond into what it is today,” CEO and president Kai Bockmann told ABC News.

“However, the challenges of running a plant from these historical buildings has become too costly and inefficient. Streamlining our manufacturing plants is the right business move.”

Founded in 1910, Blue Diamond has long been a fixture in California’s agricultural sector. In the meantime, the cooperative is offering severance packages, relocation support and incentives to 600 employees to help with the transition.

Despite the company's assurances, the closure has sparked concerns about Sacramento’s ability to support major businesses.

“Proof is in the pudding,” Sanjay Varshney, a finance professor at Sacramento State University., told ABC News.

“Blue Diamond walking away is just another sign that there's something wrong with how we are doing business here.”

Varshney cited Sacramento’s high cost of living, burdensome regulatory environment and business-unfriendly conditions as key deterrents. He dismissed the idea that international trade or tariffs were the main reasons for the closure.

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A layoff can make a big impact in your financial situation, not to mention your emotional well-being. The good news is you can help navigate the fallout with a clear game plan.

Know your benefits and severance: Insist on everything in writing and review every aspect of your exit package including your severance pay, company-sponsored health coverage and any outplacement services.