Operations

McDonald's largest fry producer stops production, lays off 4% of workforce

Photo: McDonald's

October 15, 2024

McDonald's largest French fry supplier has closed production and cut costs, according to the company's CEO in a Today report.

Lamb Weston, which produces the largest amount of French fries in North America, closed its production plant in Connell, Washington and cut 4% of its workforce, about 375 employees.

"Lamb Weston is confident in the world's ongoing love of fries — the closure of one of our older facilities accounts for less than 5% of our production capacity, so this adjustment simply helps address a current supply-and-demand imbalance," Lamb Weston spokesperson Teresa Paulsen said in a statement to the news outlet.

Lamb Weston blamed the move in part to the affordable meal deals. McDonald's announced its $5 meal deal in May, which includes fries, and has extended it through the end of the year.

Lamb Weston's stock has been down 35% since January.