Several hundred employees are set to lose their jobs when the more than 60-year-old Mr. Christie’s Bakery shuts down next year, and it may be condo dwellers who repopulate the site of the storied cookie factory.

Mondelez Canada, who became owners of the factory after the North American split of Kraft Foods Inc. operations earlier this month, made the closure announcement Thursday afternoon to workers. Some 550 employees will be out of jobs when the doors close and that sweet smell dissipates next fall.

City councillors in Etobicoke expressed concern, saying the company is already looking to rezone the property for residential use, with a massive development concept for 27 condo towers.

“I’m just shocked right now,” said Vasyl Tkuchuk as he was leaving the plant Thursday evening. An immigrant from Ukraine, Tkuchuk has worked as a dough mixer at the plant for seven out of his 11 years in Toronto. “I was hoping this was for . . . life.”

Some employees exiting the 625,000 square-foot factory said they were too upset to talk after shift workers were given the news by Mondelez management at a cafeteria meeting Thursday.

Gerry Armstrong, 51, who has been working at the factory for 23 years, said many saw the close coming, but not this soon.

“We thought they were going to wait until it was all built up around us,” Armstrong said referring to the increasing number of condos in the area. Towers already loom on all sides of the factory near Lake Shore Blvd. and Park Lawn Rd., with several cranes also taking up the skyline as new developments continue to rise.

The closing follows an aggressive campaign started in September by Nestlé Canada, opposing a new condo development near the company’s Sterling Rd. plant, citing fears the residential community would eventually push out the factory.

Mondelez Canada cited aging outdated facilities, underutilized manufacturing capacity and a changing residential landscape in the close of the Lakeshore location, which opened in 1948 under Nabisco ownership.

“This is a difficult decision, given the role this facility has played within our organization and in the community for 64 years,” said Alvaro Cuba, vice-president of operations for Mondelez Canada in a news release. “However, the plant faces some unique challenges resulting from the changing neighbourhood surrounding the facility.”

Employees all had one word when asked what reason they were given for the closure: Condos.

Councillor Peter Milczyn, chair of the city’s planning and growth management committee, said it’s his priority to ensure the land remains zoned for employment to retain jobs.

“It’s such a huge loss of jobs all in one swoop,” he said. “It has huge implications for the city in terms of jobs and protecting lands for employment.”

Milczyn said Mondelez Canada has already made clear they hope to rezone the 27-acre property from employment to residential land.

“They have already submitted documents to the planning department looking at changing it,” he said. “They’re already showing a development concept with 27 condo towers on it.”

Councillor Mark Grimes, whose Etobicoke-Lakeshore ward is home to the factory, also expressed concern over job loss Thursday.

“I was deeply disappointed upon hearing this sad news,” Grimes said in a release. “While this comes as a deep loss to the community, I am committed to doing whatever it takes to keep high-quality jobs and high-quality employers in the South Etobicoke community.”

Meanwhile, Mondelez Canada spokeswoman Stephanie Cass said it was too early to speculate about intentions for rezoning, but that the changing landscape around the factory was a major factor in the decision to close.

“There has been significant residential developments around the facility,” she said. “As the community continues to expand we know that this will get increasingly more difficult.”

Cass said the company remains focused on helping employees, with a year’s notice of the impending closure.

While the company also operates at locations in East York and Montreal, where production will be relocated, Cass said there are currently no new jobs planned for the second Toronto location and they are still evaluating opportunities in Montreal.

The news was an unwelcome birthday present for Jeff Gurczenski, who just turned 54.

“Very tough with my age and the economy,” Gurczenski said sporting a jacket with the Kraft logo and a hair net on break outside the factory where he’s worked as a fork lift operator for eight years. “It’s a lot of people, a lot of years.”

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Mondelez Canada — a division of Mondelez International which operates a $36 billion annual revenue — comprises several major brands including Oreo biscuits, Cadbury chocolate and Trident gum.

The Lakeshore location produced such items as Bits & Bites and Stoned Wheat Thins.

With files from Paul Moloney