Foster Farms Dairy is discontinuing production at its novelty ice cream plant in downtown Salem.
The shutdown will result in the elimination of 75 full-time and 25 part-time jobs. Employees will be considered for jobs at other Foster Farms locations.
The layoffs will begin around Oct. 1 and the reduction is expected to be permanent.
The Salem plant, best known as the Deluxe Ice Cream facility, was acquired by Foster Farms from the Matterhorn Group in 2010. It is being shuttered because it does not meet the company’s production standards and modernizing it is cost prohibitive, according to a statement from Foster Farms.
Founded in 1939, Foster Farms Dairy is headquartered in Modesto, Calif.