EAGLE, IDAHO — Weak market conditions, particularly in the quick-service restaurant category, have led Lamb Weston Holdings, Inc. to restructure. As part of its plan, the company will close a processing facility, curtail manufacturing in North America and reduce its global workforce.

“To drive operational and cost efficiencies, we are taking actions that include the permanent closure of an older, higher-cost processing facility and the temporary curtailment of certain production lines and schedules in our manufacturing network,” said Tom Werner, president and chief executive officer. “Together, we expect these actions will help us better manage our factory utilization rates and ease some of the current supply-demand imbalance in North America.

“We are also taking actions to reduce operating expenses, including reducing headcount and eliminating certain unfilled job positions, as well as reducing capital expenditures. The combined estimated savings from these actions are reflected in our updated fiscal 2025 targets.”

The company has permanently closed its manufacturing plant in Connell, Wash., as of Oct. 1. The company did not specify at which of its plants in North America it will curtail production.

Lamb Weston employs approximately 9,300 and is planning to reduce its global headcount by 4%.

The company expects to record total estimated pre-tax charges of $200 million to $250 million, of which the company estimates that approximately 80% will be cash and 20% will be non-cash. The charges primarily relate to the cost of contracted raw potatoes that will not be used due to production line curtailments, accelerating depreciation of assets, the write-down of inventory and long-lived assets, employee severance and other one-time termination benefits, and other costs.