Friday, November 16, 2012

Hostess Closing and to Lay Off 18,500 Employees


Hostess, maker of Twinkies and Ding Dongs, announced on its website that it is closed.

The company said on its website that a baker’s strike caused the company to lay off 18,500 employees.

In addition to the layoff, Hostess will be shutting 
33 bakeries, 565 distribution centers, and 570 outlet stores.

Hostess began as the Interstate Baking Company in 1930 and has grown to be a near 2.5 billion dollar company. 


CEO Gregory Rayburn of Hostess says that the company had reached deals with different unions.

Rayburn says that the Bakers Union was not willing to reach a deal and that the union was willing to lose their jobs.

The Bakers Union said that they have no responsibility in the failure of Hostess and that the responsibility is in the hands of the decision makers of the company.




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