04:55 AM EDT, 10/02/2024 (MT Newswires) -- Lamb Weston Holdings ( LW ) said late Tuesday it is implementing a restructuring plan, which includes a global workforce reduction of 4% and permanent closure of its manufacturing facility in Washington.

The company said it would temporarily curtail certain production lines and schedules across its manufacturing network in North America.

Lamb Weston ( LW ) also lowered its capital expenditure for fiscal 2025 to $750 million from the previous estimate of $850 million. The restructuring is expected to generate around $55 million in pretax cost savings.

Due to the implementation of the restructuring plan, the company expects to record pretax charges of $200 million to $250 million, primarily related to unutilized raw potatoes, accelerated depreciation, inventory write-downs, and severance costs.

The company said that most of the charges are expected to be recorded in fiscal Q2 2025, with the remainder during fiscal H2 2025.