A major McDonald’s french fry supplier is cutting jobs as cash-strapped customers avoid the fast-food industry amid inflated prices.

Lamb Weston, the largest french fry maker in North America, announced last week that it would cut 4% of its global workforce and curtail production lines after the company reported a dismal earnings report, as first reported by CNN.

The Eagle, Idaho-based company briefly closed a plant in Connell, Washington – resulting in the loss of 375 jobs, according to NBC NonStop Local.

“Restaurant traffic and demand for frozen potatoes continue to be weak relative to supply, and we expect them to remain weak through the end of fiscal 2025,” Lamb Weston CEO Tom Werner said in a statement.

“Together, we expect these actions will help us better manage the utilization of our factories and alleviate some of the current imbalance between supply and demand in North America.”

Shares of Lamb Weston are down nearly 35% so far this year.

Inflation-hit consumers have significantly cut back on spending at fast food restaurants and are choosing to cook at home instead.

Although Lamb Weston also supplies restaurants and grocery stores, the company relies heavily on its fast food business.

According to Lamb Weston, around 80% of French fries consumed in the United States come from fast food restaurants.

To win back customers, fast food chains have launched a range of affordable meal options.

McDonald’s introduced a $5 meal deal this summer that includes a McDouble or McChicken, a four-piece nugget, small fries and a small fountain drink.

Competitors like Burger King and Wendy’s offer competing offerings, most of which include small fries.

However, these inexpensive meals have led to a decline in overall demand for French fries.

“Many of these meal promotions have consumers switching from a medium fry to a small fry,” Werner said on an earnings call last week.

Lamb Weston did not immediately respond to requests for comment.

McDonald’s is Lamb Weston’s largest customer. Trouble for the Golden Arches means trouble for Lamb Weston, and McDonald’s continues to see declining sales.

McDonald’s U.S. same-store sales fell 0.7% in its most recent quarter compared to the same period last year.

Lamb Weston’s first quarter fiscal 2025 results weren’t much better.

The french fry maker’s net sales fell 1%, its operating income fell 34% and its net income fell 46% compared to the same period last year.