As part of a business reorganization, Hormel Foods intends to eliminate 250 corporate and sales positions.
The company that makes Spam and Planters announced that it is reducing some positions in its office-based staff and closing numerous unfilled positions. A voluntary early retirement scheme has also been put in place by Hormel for the benefit of its non-plant employees.
The company stated that the move aims to strategically align resources, support future growth, and strengthen overall business operations.
According to Hormel Foods President John Ghingo, the company is focusing its resources on areas like innovation, technology, food safety, and quality.
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Hormel Foods Focuses on Efficiency and Future Growth
“Hormel Foods is still committed to expansion, and expansion necessitates ongoing investment,” Ghingo stated. “We are confident that our ongoing investments will enhance our brands, boost efficiency, and ensure Hormel Foods stays competitive and responsive to customer needs.”
The company anticipates paying between $20 million and $25 million in restructuring charges for employee benefits, cash severance payments, pension benefits, and stock incentives.
Like other CPG businesses, Hormel has been dealing with dwindling sales and growing expenses. Executives said this week that the Minnesota-based company is experiencing isolated disruptions, such as bird flu and a fire at a peanut butter plant in Arkansas, in addition to the effects of inflationary pressure. Additionally, Hormel reported the retirement of its CFO, and it recently temporarily reinstated former CEO Jeff Ettinger in the position.
In 2025, the food and beverage industry will have been severely impacted by employment losses as businesses try to align costs with declining demand.
Industry-Wide Job Cuts Reflect Economic Pressure
Among the companies that have eliminated roles are Nestlé, General Mills, and Molson Coors. In order to speed up its business recovery, Nestlé said in October that it would eliminate 16,000 jobs. The cut amounts to around 6% of the company’s 277,000 employees worldwide.
