Apr. 27—Mizkan America has announced layoffs at its Owensboro facility on Ragu Drive, with 39 hourly and salary employees losing their jobs by the end of July.

In an April 19 letter sent to company employees, Mizkan president and CEO Diego Palmieri wrote: "As an outcome of the annual planning process, the projected production volume reduction for FY23 necessitates right-sizing and restructuring the Owensboro organization."

Mizkan makes pasta sauces at the Owensboro plant.

"Due to these projected volume changes, we need to reduce the Owensboro Team's headcount plan, which will impact 39 team members," Palmieri wrote. The staff reduction was "designed to align our costs and volumes."

The layoffs affect 34 hourly employees and five salaried employees. Positions that have been held open will be closed, for a total of 77 positions eliminated.

The positions of senior production manager and quality manager have been eliminated, as have the positions of senior quality technician and customer complaint coordinator, according to a letter sent to Owensboro facility workers by Chris Dixon, Mizkan's vice president of operations and supply chain.

Five supervisor positions on the Red Sauce lines were also eliminated, along with one QA supervisor position, Dixon's letter says.

Production will also be curbed on the Red Sauce line, with the facility running two of its three lines most weeks, Dixon's letter says.

Palmieri wrote, "While these decisions are certainly never easy to make, they are necessary to continue to improve our Meals Solutions business and the overall performance of our organization.

"These changes will create more efficiency in Mizkan's production and distribution processes, while also reducing costs and allowing us to provide excellent service to our customers."

All of the layoffs will be completed by late July, Palmieri's letter says.

The Messenger-Inquirer sent several questions to Mizkan America's director of communications, Deborah Cross. In an email, Cross said the "reduction in force" involves "less than 10% of our Owensboro Team."

No other Mizkan facilities will undergo layoffs, Cross wrote.

In a general statement, Cross wrote the layoffs were needed "to right size and reorganize our manufacturing in accordance with our production estimates for the new fiscal year."

Cross did not answer questions regarding what was driving the changes in Red Sauce production at the plant. Cross said in an email the company would not comment beyond its statement.

Brad Davis, vice president of business development at the Greater Owensboro Economic Development Corp., said Wednesday the organization had not been informed of the layoffs. The EDC would try to direct Mizkan to workforce development resources, if the company requests assistance.

Davis said, "I think companies are closely monitoring the situation with inflation and costs," Davis said. "There's still talk of a possible recession among economists. I think companies watch that closely."

Companies in Owensboro are still seeking workers, Davis said.

"Hopefully they will be quickly absorbed" by other industries, he said.