Austin Packaging Co. plans to eliminate its frozen pizza manufacturing business, laying off about 125 employees.
Frozen pizza accounts for about half of APC's business. The layoffs take effect April 5.
The Austin-based company says the move comes after a year and a half of decline in the frozen pizza industry as customer demand went down. APC will lay off employees at every level, from line workers and mechanics to managers and supervisors.
Mayor Tom Stiehm calls the cutbacks a significant blow for Austin.
APC doesn't disclose which frozen pizzas it manufactures. The Austin Daily Herald reports the company will focus on the other side of its business, manufacturing a wide variety of sauces.
The company has been in business since 1998 and has about 250 employees.