According to recent reports, the Quaker Oats company announced it would shut down a Danville, Illinois, factor where over 500 employees could be out of a job.  After spending 65 years in the community, the parent company, Pepsico, will cease operations in June.

Reportedly, the business has already ceased production at the plant but will continue to pay its employees until June.  Quaker Oats Company noted in an announcement that it has decided to close the plant to modernize its production capabilities at a newer facility.

“The Quaker Oats Company announces that we are permanently closing our facility in Danville, IL. Following the Quaker recall in December 2023, we paused production at the facility. After a detailed review, we determined that meeting our future manufacturing needs would require an extended closure for enhancements and modernization. In order to continue the timely delivery of Quaker products trusted by consumers since 1877, we determined production would need to permanently shift to other facilities. We do not make this decision lightly and recognize the impact it will have on our employees, their families, and the Danville community. We have notified our workforce and are working closely with our employees and local community officials to provide a supportive transition,” according to a statement from the company.

Community leaders have expressed their intent to assist those in Danville who will displaced from a job following the closure.  Danville Mayor Rickey Williams Jr., Vermilion Advantage CEO Mike Marron, Danville Area Community College Stephen Nacco, and Vermilion County Works Director Chuck Jones released a joint statement on the matter.

The statement explained the saddening news that Quaker Oats will be pulling out of the community after nearly seven decades.  “Today, we learned that after 65 years of production in Danville, Pepsico will close Quaker Oats effective June 8, 2024.  The business has already ceased production but will continue to pay their employees through that time.  While this shocks and saddens us, we will unite as a community to help those who have lost their employment,” the statement read.

The statement further explained several organizations that are pooling their resources to aid the community.  The groups are actively updating job listings and advertising training opportunities to help disaffected workers transition to new roles in the community.

“The City of Danville, Vermilion Advantage, Danville Area Community College, and Vermilion County Works are collaborating to ensure that Quaker employees and their families have the support that they need.  We are currently updating a list of local job opportunities and discussing training opportunities that will help them transition into other roles in the community.  Most other businesses in town need additional skilled workers, and Quaker employees are known for their hard work and commitment to excellence.  Our hope is to connect great workers to great employment opportunities. Together, we will weather this storm,” the joint statement continued.

The Quaker Oats closure is troubling news for the Illinois community that has relied on the company as a substantial source of employment for decades.  At a higher level, it is a concerning trend for the waning domestic industry.

Watch local media’s report on the sad closure here:

Featured image credit: screengrab from the embedded video