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Monterey Mushrooms LLC is laying off 253 workers in Morgan Hill as part of a restructuring, according to a state filing.
The Watsonville-based company said it's transitioning from a mushroom farm and packing facility at 642 Hale Ave. into solely a packing facility. The company was founded in 1971 and is North America's largest mushroom producer, according to analyst reports.
Starting in September, 246 jobs will be cut, including general laborers and fill line operators in the growing department, mechanics and harvesting technicians. The remaining seven jobs will be cut in November and December, including a maintenance supervisor, purchasing supervisor, controller, farm manager, project manager and operations manager.
"Monterey Mushrooms, LLC recently issued a WARN notice as part of a strategic restructuring of specific operations at our Morgan Hill facility. To be clear, this is a realignment of our workforce, not a facility closure. There will be no disruption to our business, and our customers will continue to receive the same high-quality products and uninterrupted service they expect from us," the company said in a statement.
In late 2024, the company closed a 275-acre Royal Oaks (Santa Cruz County) facility and laid off 605 employees.
Monterey Mushrooms has 4,000 U.S. employees and grows 250 million pounds of mushrooms per year, according to its website.
Separately, augmented reality tech company Magic Leap said it was laying off 76 workers in Sunnyvale in October. The Florida-based company is also laying off 193 workers in its home state.
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