The Campbell Soup Company's longtime Toronto manufacturing plant will close down within the next 18 months.

The soup giant says it will move its headquarters to a new location in the Greater Toronto Area after the closure, but 380 of the company's current 600 jobs will be "impacted."

"The decision to stop producing soup and broth in Canada was a difficult one," said Campbell executive Mark Alexander. "After a thorough review, we decided this was the best course of action for our business."

The company says the Toronto closure is necessary to improve its operational efficiency, citing a challenging retail environment that has seen volume declines of canned soup in North America.

Campbell says several factors have resulted in excess capacity in its North American supply chain network, and that due to its size and age the Toronto plant cannot be retrofitted in a way that is competitively viable.

Local councillor Mark Grimes tweeted Wednesday that the news was a "devastating" blow for Ward 6, Etobicoke-Lakeshore.

Absolutely devastated to hear that Campbell's is closing its <a href="https://twitter.com/hashtag/Ward6?src=hash&ref_src=twsrc%5Etfw">#Ward6</a> plant in New Toronto. Campbell's has been in our community for generations, and I am deeply saddened for the 380 employees affected by this. Please find my full statement here: <a href="https://t.co/7XphpWXA63">https://t.co/7XphpWXA63</a> —@Mark_Grimes

"I personally have many close, personal friends who work at this facility. I am truly saddened to hear this news, and want to extend my sympathies to all the employees and families that will be affected by this closure," Grimes said in a statement. "This is a truly sad day for the Lakeshore community."

The company says soup and broth production at the Toronto facility will be moved in phases over the next 18 months to three plants in North Carolina, Ohio and Texas.

Campbell says it will move its current Canadian headquarters and commercial operations at the Toronto facility to a new location in the Greater Toronto Area, which will feature a new food innovation centre.

The company says the Toronto closure is necessary to improve its operational efficiency, citing a challenging retail environment that has seen volume declines of canned soup in North America. (CBC) "The Centre will develop new recipes that will continue to be tailored to Canadian tastes and preferences," Campbell's spokesperson Alexandra Sockett said in a statement Wednesday evening.

It says about 200 jobs out of the nearly 600 positions at the Toronto facility will be relocated to the new headquarters.

In a statement, Mayor John Tory said he extended his sympathies to those affected by the closure and added that he was assured by Campbell Canada president Ana Dominguez that the company "will be helping their employees as much as much as possible over the coming months."

"It was simply put a situation where we can produce a lot more soup than what we can actually sell," Dominguez said, adding that consumption of canned soup has declined by 30 per cent over the last 10 years

Being the oldest and smallest of the facilities, she said, it was decided that the one in Toronto would need to be closed.

Dominguez says no one will lose their job right away, and that the closure will take place over a period spanning 18-months.

The company will include severance packages based on service, as well as help with resume preparation and job fairs.