BUSINESS

Reckitt Benckiser to lay off 140 in Springfield as warehouse operations shift to St. Peters

Thomas Gounley, TGOUNLEY@NEWS-LEADER.COM
The Reckett Benckiser plant in Springfield.

Reckitt Benckiser plans to lay off 140 workers in Springfield.

The consumer goods company, which is based in England and operates as RB, told the Missouri Department of Economic Development that the layoffs will occur between April 29 and July 1 of this year. Details of the layoffs were required under the Worker Adjustment and Retraining Notification Act.

In an email, Reckitt Benckiser spokeswoman Suzanne Grogan that "upon completing an extensive review of our logistics infrastructure" the company decided to relocate its existing warehouse and custom manufacturing operation in Springfield, which supports its household and retail food businesses, to a new facility in St. Peters.

"The change is necessary in order for us to remain competitive in the value proposition we offer to our customers," Grogan said. "The move will help accommodate for our rapid growth, provide us with better access to more well-travelled and competitive shipping lanes, and also provide some business efficiencies (i.e., the site is close to our existing St. Peters factory)."

Grogan said the number of employees at the company's French's plant in Springfield — which produces French's Mustard and other products like Cattlemen's BBQ sauce and Frank's RedHot — will remain the same. Still, some workers at 4455 E. Mustard Way may be indirectly affected.

"Due to certain union-related interplant bumping rights, some employees at French’s may be bumped from their positions by union employees who have been displaced from RB’s warehouse and custom manufacturing operation," Grogan said.

The decision to move the operations to St. Peters, which is near St. Louis, will reduce Reckitt Benckiser's Springfield employee count from about 440 to 300.

"This was a difficult decision but necessary to support the future growth of our business and our competitive advantage," Grogan said. "We are grateful to our colleagues, each of whom has played an important role in our success. We are aware of the impact this change will have on some of our employees and will work with them to ensure their transition is as smooth as possible."

Grogan said Reckitt Benckiser has about 260 employees at an existing manufacturing facility in St. Peters, along with more than 350 contract workers, and that the company is looking to hire 50 more employees.

The new logistics facility in St. Peters will have about 10 full-time Reckitt Benckiser employees, along with approximately 350 individuals who are either contract workers or employed by a third-party logistics company, she said.

Grogan said that "in some instances, depending on job role and qualifications, displaced employees at the Springfield site have been offered relocation to the new St. Peters site."