Blue Bell lays off, furloughs 75 percent of workers

Blue Bell Creameries on Friday announced a massive round of layoffs and furloughs across multiple states that will be felt keenly in its hometown of Brenham, already hurt by cuts in other industries.

The layoffs affect 750 full-time and 700 part-time employees, with furloughs for another 1,400 - moves that reach nearly 75 percent of the Texas-based company's workforce.

It seemed an almost inevitable day of reckoning because the listeria outbreak dogging the company since March has halted production, likely for months longer.

For a company that prides itself on work ethic and loyalty, the cuts stung all the more for some because of past assurances.

"In our entire history, we've never had layoffs. It's not happening now," spokeswoman Jenny Van Dorf had said on April 22.

Last week, a company spokesman stepped back from that, responding to questions about layoffs by saying officials were evaluating all operations.

On Friday, CEO Paul Kruse took to video to describe what he called "the most difficult thing I have had to deal with in my life."

Employee response on social media ranged from outrage to resignation to a determined support for a beloved institution.

"My husband was one of the people let go, no explanation as to why he (or anyone else) was picked to be 'permanently laid off,' " wrote Hannah Averitt. "He was there a total of 13 years. No information. No warning. It was very poor handling of the entire situation."

But it seemed just as many were sympathizing with the company, offering prayers and rallying for a recovery.

"Thank you Blue Bell for doing everything you can to take care of the employees," wrote Frances Herndon, whose husband was furloughed. "Ten years later and, whether or not he stays, we will still continue to support the company."

The layoffs affect about 37 percent of the Blue Bell workforce of 3,900, the company said in a statement.

Furloughed employees will get partial pay with the expectation that they will return to work as production resumes. The company said employees essential to operations, cleaning and repair efforts will continue to work but have their pay cut.

The downsizing, effective immediately, is the first in the 108-year history of Blue Bell.

It's a morale crusher for Brenham, which will see about 250 of the layoffs and 300 furloughs. Blue Bell, with a local workforce of about 850, is Washington County's second-largest employer, after the state-supported living center.

In the past few weeks, 224 workers lost jobs in Brenham, said Page Michel, president of the Brenham-Washington County Chamber of Commerce. Agricultural equipment producer Valmont Industries laid off 160, while machining company MIC Group cut 64.

"We're calling it an economic hurricane," Michel said.

With so many out of work, and creamery tours off just as prime vacation season arrives, shops, restaurants, gas stations and other satellite businesses will see revenues melt away.

Brenham is no bedroom community. Far more workers commute to the city each day than leave it, according to Michel's figures.

That is bound to change as hundreds of job-seekers look to the region for help. And they will begin looking in an area already teeming with laid-off oil industry employees. Michel said the chamber is working with other institutions to put on job fairs.

"Blue Bell employees are renowned as some of the most loyal and hard-working people you can find," she said.

Friday's news also sent those at Brenham City Hall scrambling to assess budgets because the city also is the local utility provider and Blue Bell is its biggest customer. City Manager Terry Roberts wasn't prepared to say how much the long-term shutdown will dent coffers because he hasn't discussed it with City Council. But he gave a general idea: The city's general operations budget is about $16 million. The utility operations budget is more than $40 million.

"It was a matter of time," Roberts said. "We're going to have to face this day."

As Blue Bell expanded to 23 states, it maintained quality control by owning its own distribution, so the announcement will be felt acutely in that part of the operation. The company is suspending work at distribution centers in 13 cities in 10 states outside of Texas, anticipating limited capacity once production resumes. Distribution centers typically serve a 75-mile radius.

Blue Bell said it is reaching out to find other businesses with jobs available for laid-off employees.

In some ways, Brenham is looking on the layoffs as a painful down payment on a robust, if long, recovery, Michel said.

"Everyone I talk to says Brenham will come through this," she said.

But all that hinges on Blue Bell.

There is both faith that the company will carry through and come back stronger and fear that a longtime symbol of Texas country life - and all the simple values that icon tries to represent - could disappear.