Mexican bakery giant Grupo Bimbo is to end operations at a factory in Nebraska by early July.

The facility in Bellevue produces bread and buns. It employs 172 people.

“A recent assessment of our Bellevue, Nebraska bakery concluded that this bakery is inconducive to our company growth plans,” local subsidiary Bimbo Bakeries USA said in a statement.

Bimbo said it will shift production to other bakeries in the company’s manufacturing network.

“This was a difficult decision because of the dedicated teams and community connection of the Bellevue Bakery,” Marco Espinoza, senior director of regional operations, was quoted as saying in the statement.

“However, after careful analysis and consideration, it was apparent that the facility did not have the infrastructure and manufacturing capability to compete in the marketplace.”

Last week, Bimbo announced the closure of a facility in Canada, with jobs set to go as a result.

The bakery in Lévis, Quebec, will close its doors in the week starting 1 July. Some 95 employees are impacted by the decision.

In April, Bimbo said it expects to cut its capital expenditure in 2024. Speaking to analysts after Bimbo filed its first-quarter financial results on 22 April, CFO Diego Gaxiola said the group was “expecting a slight decrease for this year” and “for 2025”.

Gaxiola added Bimbo would “probably see a normalisation in [2026] going forward”.

Also in April, the company appointed chief operating officer Rafael Pamias as its new CEO.

Pamias started in the new role on 1 May, succeeding Daniel Servitje, who has been Bimbo’s CEO since 1997.