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.”
End of an era
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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What to do when facing layoffs
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.
If your employer-provided health insurance ends, consider COBRA coverage or explore plans through Covered California or Healthcare.gov. Losing a job qualifies you for a special enrollment period.
Apply for unemployment insurance immediately: File a claim through your state’s unemployment office. Unemployment benefits become available only after your claim is processed, so don’t delay.
In California, most workers qualify for 50% of their regular wages, up to $450 per week for as long as 26 weeks, though exact amounts depend on prior earnings and state rules.
Reassess your finances: Review your monthly expenses and cut nonessentials. Use emergency savings wisely and contact lenders or utility companies to discuss bill assistance programs or payment deferrals if needed.
Update your resume and tap your network: Network with former colleagues, industry contacts and career counsellors. Inform your LinkedIn network, for example, that you’re open to work and consider attending local job fairs or virtual networking events.
Consider retraining or upskilling: Free or low-cost training programs are available through local workforce development centers and platforms like Coursera or LinkedIn Learning. Focus on in-demand fields like health care, logistics and technology.
Blue Diamond’s shutdown echoes a nationwide surge in layoffs. The U.S. Bureau of Labor Statistics reports that 1.8 million workers have lost their jobs in 2025.
In Sacramento, the loss of a century-old employer underscores that even the most established businesses can falter amid shifting economic currents — and highlights the urgency of diversifying the region’s economic base.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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