Paine Schwartz-owned Monterey Mushrooms layoffs top 1,000

Paine Schwartz continues to dismantle Monterey Mushrooms, laying off over 1,000 workers

Monterey Mushrooms is the largest grower of fresh mushrooms in North America, responsible for a significant percentage of mushroom production. The company’s website highlights the history of responsible ownership starting when Shah Kazemi, a Persian immigrant who started as an employee, bought it in 1988. He is profiled across multiple accounts as a caring manager, who invested in the company, community, and workers, working with the United Farm Workers (UFW) to negotiate fair pay and benefits for farm employees. Workers at the original California operations have been represented by the UFW for many years and enjoy fair pay and benefits such as a pension and healthcare. 

However, leadership changes began when the company received investments and was eventually acquired by private equity firm Paine Schwartz in 2022. In 2023, new management took over from founder Shah Kazemi. The same month of the leadership change, the company announced the closure of its Illinois and Florida operations. The Florida closure included layoffs of over 200 workers and the Illinois closure led to over 300 permanent layoffs, with no offer of employment at other facilities. 

In 2024, the company shuttered its largest California plant in Royal Oaks, laying off over 600 workers who were represented by the UFW and transferred production to other locations, including facilities in Texas and Tennessee. The company finalized the layoffs two days before the Christmas holiday, citing aging infrastructure, adverse weather, and inflated costs for raw materials and labor. 

In July 2026, the company filed a WARN Act notice, announcing with only 60 days notice that it would lay off 246 workers, the majority of the Morgan Hill, CA plant, leaving a smaller number of packing jobs, which are expected to pack mushrooms grown in other facilities outside of California. Monterey Mushrooms and the UFW are negotiating over the details of the layoffs, according to their collective bargaining agreement. 

Paine Schwartz has a history of closing down agricultural companies, resulting in layoffs. Paine Schwartz acquired and combined two of the country’s largest stone fruit growers, Gerawan Farming and Wawona Packing in 2019. By October 2023, the company entered bankruptcy and began the process of laying off between 5,000-10,000 employees. The Maine Public Employee Retirement System’s initial investment, which was originally valued at $15 million, plummeted to just $3,000 post-bankruptcy. “Daniel Gerawan, a former Prima Wawona chief executive and a minority investor in the business, has sued the firm, alleging Paine Schwartz drained $24 million from company coffers by charging fees for itself and consulting firm McKinsey & Co. that weren’t covered by contracts.” Gerawan and Paine Schwartz settled the lawsuit during bankruptcy proceedings.

Monterey Mushrooms has already laid off over 1,000 workers under Paine Schwartz ownership and it is unclear whether there will be more closures in the future. As part of the collective bargaining process, Monterey Mushrooms is required to bargain about the fate of the laid off workers. The company and its private equity owner should guarantee fair severance pay and benefits, offer alternative employment, and commit to rehire rights for laid off workers.