New layoffs at five Wisconsin locations could impact the legacy of a company first known for its ice cream delivery

Reaction from long-time customers brings disappointment over continuing layoffs and poor service, while history of the former Schwan’s company includes an iconic ice cream delivery option

Five Wisconsin locations are being hit by new layoffs at the former Schwan’s company this summer. Insiders suggest the new name, along with continuing layoffs here and across the country, could impact its legacy. Schwan’s first earned customers with an iconic ice dream delivery service more than 70 years ago.

Randall Scott considers himself a regular on the company’s central Wisconsin route. Though delivery consistency has been an issue the past several years.

“I used to know the basic day and time for the Schwan’s delivery driver to stop by,” Scott says. “But now it’s a guess, if there’s a stop at my home at all.

Schwan’s, now known as Yelloh, just submitted a Worker Adjustment and Retention Notification (WARN) letter to the Wisconsin Department of Workforce Development (DWD). It indicates dozens of layoffs across the state go into effect July 27.

The company also provided a list of locations being closed:

• 2818 Lorch Avenue – Eau Claire
• 3715 Downwind Drive – Marshfield
• 3020 Pioneer Avenue – Rice Lake
• 152306 Cloverland Lane – Wausau

Yelloh officials say the employees affected will be paid through late July and remain on the company’s benefits plan, which is something the WARN Act requires.

The company already cut more than 750 employees and closed 90 delivery centers around the country in the last year.

Schwan’s began as a dairy operation in rural Minnesota, creating the home delivery part of the business in 1952. The Schwan family sold 70% of the company to the Korean firm CJ Cheil Jedang for a reported $1.8 billion in 2018. The name changed to Yelloh in 2022. Officials called it an effort to appeal to a broader customer base in what is now a crowded food delivery space.

Scott wonders if his long-time favorite delivery service simply tried to push the business boundaries too far.

“You start to feel like you can’t count on a company,” Scott says. “And it’s too bad if a business like Schwan’s, known for its great customer service, can’t see these changes will just continue to impact its bottom line.”