The Chicago-based company confirmed the closure of its 31st Street facility in a statement, saying the plant will shut down in April 2027. Ferrara attributed the decision to "market conditions and our long-term innovation roadmap."

Layoff notices were delivered to 154 employees this week, according to the Illinois Department of Commerce and Economic Opportunity, which tracks mass layoffs under the Worker Adjustment and Retraining Notification Act.

The company said affected workers will be "given the opportunity to apply for open positions" elsewhere in the company and pledged to provide severance benefits and job placement services.

"Ferrara is deeply grateful to Chicago's Little Village community for years of partnership and neighborly collaboration," the company said in its statement.

Ferrara, known for candies including Nerds, Laffy Taffy and SweeTARTS, moved its headquarters to Chicago and built the Little Village manufacturing facility as part of its expansion in the city. The company said it will keep its headquarters in Chicago but declined to provide details about its manufacturing strategy going forward.

The closure is a significant economic hit for Little Village, a predominantly Latino neighborhood where manufacturing jobs have historically provided stable employment for residents. The loss of 154 positions represents a substantial blow to local workers and their families, and the timing—with the plant slated to remain open for more than a year—gives employees and community organizations a window to press the company for stronger transition support.

Ferrara's decision comes as manufacturers nationwide weigh plant consolidations against rising costs and shifting consumer demand. For Little Village, the announcement raises questions about the future of the site and what support the company and city will provide to displaced workers.

This story will be updated as more information becomes available.