US food and consumer goods giant Sara Lee is to stop production at its bakery facility in Fort Payne, Alabama early next year due to lower demand for baked goods.

Company spokesman Matt Hall said the plant, which makes bread, cakes and doughnuts, will close in mid-January next year, reported the Associated Press.

In the last 15 months the bakery's workforce has been reduced from 800 to around 180. After the end of October just 60 employees will remain at the plant as production is reduced.