Business

Idaho french-fry maker for McDonald’s to lay off hundreds of employees

Eagle-based french fry giant Lamb Weston plans to lay off hundreds of employees.

The company announced Wednesday in its quarterly earnings report that it intends to slash 4% of its global workforce. The cuts include the elimination of certain unfilled positions, according to a news release.

Lamb Weston employs over 10,000 people around the world in sales offices, manufacturing plants and corporate offices. More than 1,500 of those employees work in Idaho, according to the Idaho Department of Labor. Its headquarters are near the intersection of Eagle Road and State Street in Eagle.

The company also has two plants in Idaho, in Twin Falls and American Falls, and corporate offices, research facilities and more than a dozen potato-processing factories in the Mid-Columbia area in Washington state, where it employs about 3,000 people.

Lamb Weston processes potatoes at this plant in Pasco, Washington.
Lamb Weston processes potatoes at this plant in Pasco, Washington. Bob Brawdy bbrawdy@tricityherald.com

But it’s not known how many of those Idaho and Washington workers are affected by the layoffs. A spokesperson for Lamb Weston declined to say exactly how many were laid off or where those employees are located. The spokesperson told the Idaho Statesman by email that the company began notifying its U.S.-based workers on Wednesday.

Lamb Weston is the largest producer of french fries in North America and is a major supplier to restaurants, grocery stores and fast-food chains, including McDonald’s.

Crinkle-cut french fries produced by Idaho potato-processing giant Lamb Weston.
Crinkle-cut french fries produced by Idaho potato-processing giant Lamb Weston. Lamb Weston

The layoffs are part of the company’s “focus to win” strategic plan that aims to save at least $250 million a year, the release said. Workers whose jobs were cut were offered severance packages and additional resources, according to the spokesperson.

The announcement follows a big win from activist investment partnership Jana Partners to shake up the struggling Idaho company. Jana Partners, one of its largest shareholders, built a stake of over 5% in Lamb Weston last year before forcing the CEO to step aside over “disastrous financial results,” the investor previously said. In June, it won the corporate chairmanship and several other board seats.

Shareholders welcomed the earnings report. The company’s shares shot up 16.3% on Wednesday, closing at $57.19, up from $49.17 at Tuesday’s close. Lamb Weston stock trades on the New York Stock Exchange under the ticker LW.

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This story was originally published July 23, 2025 at 3:14 PM.

Angela Palermo
Idaho Statesman
Angela Palermo covers business and public health for the Idaho Statesman. She grew up in Hagerman and graduated from the University of Idaho, where she studied journalism and business. Angela previously covered education for the Lewiston Tribune and Moscow-Pullman Daily News.  Support my work with a digital subscription
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