Watch stocks you care about
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Green Mountain Coffee Roasters (NASDAQ: GMCR ) is shifting its production profile north of the border. The company announced that it will cease production in its Toronto factory by March 5 of next year. Starting from then, it will consolidate all of its Canadian production in its Montreal plant.
The move affects 120 of the company's employees, or around 2% of the total workforce. Green Mountain said it would offer outplacement services to the workers who will lose their jobs.
The firm anticipates that it will take a one-time, pre-tax charge in its Q4 for the layoffs. It believes this charge will be "immaterial" to fiscal 2013 results.
In the press release announcing the news, Green Mountain quoted its CEO Brian Kelley as saying that, "After careful analysis of facility-specific operational costs and the Toronto facility's inability to expand to accommodate future growth, it was clear that consolidating our Canadian-based production to our Montreal facility is the right business decision to support our strong and growing presence in Canada."
Green Mountain's shares closed down 1.7%, or $1.42, to $84.88 after the news was announced.