Employees at Mondelez's Chicago bakery are girding for hundreds of job losses as the food and beverage multinational consolidates its operations and upgrades its production lines.
But the layoffs could double if the company elects to install new equipment in Mexico instead.
Mondelez, which counts Oreo cookies and Ritz crackers among its brands, is reportedly weighing whether to replace production lines at the Chicago facility with four high-speed lines or install new lines at its plant in Salinas, Mexico.
Should the lines stay on Chicago's southwest side, a company spokeswoman said the job cuts should amount to about 300. About half of the bakery's 1,200-employee workforce would be cut, however, if company officials move production to Mexico.
The company has not indicated when it plans to make a decision about the $130 million upgrade.
The Chicago facility, which first opened in the 1950s, is Mondelez's largest U.S. bakery; company officials said the plant would not close and remains "an important part of the network."