SAN JOSE, Calif. (KRON) — Hundreds of people are about to lose their jobs in the South Bay. Amy’s Kitchen is shutting down its San Jose frozen food plant – less than two years since opening. 

The vegetarian and organic frozen-food company says they simply don’t have enough money to stay open. Amy’s Kitchen says this food factory is losing $1 million dollars a month, and they cannot overcome current economic hurdles.

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Sources tell KRON4 that workers are no longer in the building, and now it’s just senior management clearing out the companies’ belongings. A represenative wasn’t available for an interview but in a statement the company says the plant on Las Plumas Avenue opened in 2021 after demand for their pizzas skyrocketed. The company says they opened this factory to meet consumer demand.

But now the company says a tight labor market, inflation, supply-chain issues, and the War in Ukraine increased raw material costs. Amy’s says the cost of sunflower oil used in many of their meals increased by 125 percent. 

The company says they will keep their three other food processing plants open, but the reported 300 people who worked here will have to find another job.