Danville Quaker plant to close; 510 employees losing jobs

Apr. 3—DANVILLE — The Danville Quaker Oats plant, owned by PepsiCo and one of Vermilion County's largest manufacturing employers since 1969, will be closing its doors in June.

A Notice of Plant Closure letter to employees, dated Wednesday, reads, "Dear Danville Associate: This notice is being issued pursuant to the Illinois Worker Adjustment and Retraining Notification Act and the Federal Worker Adjustment and Retraining Notification Act to inform you that Quaker Manufacturing LLC is permanently closing its entire facility located at 1703 E. Voorhees St., Danville, IL, 61832. This will result in the employment termination of approximately 510 employees. The projected closure date will be June 8, 2024. Your separation date from the company will be within the 14-day period beginning on or about June 9, 2024. I have been designated by the company to be the contact person if you need further clarification of the information in this letter..."

The letter is signed Susan Reynolds, Human Resources.

For Danville salaried employees with the company, all employees will continue to receive regularly scheduled pay and benefits without interruption through June 8, according to information given to employees.

PepsiCo Human Resources will contact employees to schedule individual meetings beginning Thursday. Discussions will include: career aspirations and mobility preferences to explore other jobs within PepsiCo and relocation options for those eligible.

Employees also were given information sheets on Employee Assistance Program, Healthy Money (financial coaching) and applying for other PepsiCo's jobs.

Sign-ups for support sessions covering Healthy Money, retirement and the Employee Assistance Program will be in person on April 8 and April 9 at the David S. Palmer Arena in Danville and virtually April 10 and beyond.

There also are sign-ups for employees to pick up their personal belongings from the plant (desks, lockers, tools).

The employee information also states there is no need to file for unemployment at this time due to pay and benefits through June 8. More information, including severance eligibility, will be provided to employees in early June.

According to the Quaker Media Team, the company was finalizing employee notifications on Wednesday.

In a public statement from The Quaker Oats Company, "The Quaker Oats Company announces that we are permanently closing our facility in Danville, Ill. 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."

The company continued, "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."

In 2015, the Danville Quaker Oats plant had about 530 employees making it the second largest manufacturing employer, behind KIK Custom Products, in Vermilion County. Overall, the local plant was No. 9 among the non-retail major employers in the county, according to Vermilion Advantage statistics.

The plant at 1703 E. Voorhees opened in 1969, and produced Quaker Chewy Bars, Quaker ready-to-eat cereals, and Aunt Jemima pancake mix. It became part of PepsiCo in 2001.

Some community members say they were not surprised at the closure announcement, but it's devastating to the community. It's a lot of employees for the job market to absorb.

Danville Area Community College President Stephen Nacco said, "Addressing this will require a total team effort. I know from DACC's Brian Hensgen and Vermilion Advantage's Mike Marron that the American Job Center and Vermilion County Works are already working out a plan with Vermilion Advantage to address the needs of the 500-or-so dislocated workers. Some will require additional training, which they'll receive for free from DACC. Others can be placed immediately into vacancies in other local manufacturers. What's critical is how well we're able to coordinate the support of the American Job Center's state and local partner agencies with Quaker's management team and their human-resources staff."

A joint press release was issued late Wednesday afternoon by the City of Danville and Danville Mayor Rickey Williams Jr., Vermilion Advantage, DACC and Vermilion County Works.

It reads, "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 City of Danville, Vermilion Advantage, Danville Area Community College and Vermilion County Works are collaborating together 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."