Tyson Foods has today announced it plans to cut 450 jobs in the US as it targets savings over the next three years.
Most of the eliminated positions will come from the corporate offices in Springdale, Chicago and Cincinnati.
Tyson also revealed it expects adjusted earnings for the fiscal 2017 year, which ends this Saturday, to come in between $5.20-$5.30 per share, up from its previous prediction of $4.95-$5.05 per share.
This is primarily due to ‘much better’ earnings in its beef segment.
The company said that synergies from purchasing AdvancePierre Foods – the snack company which it acquired for $4.2 billion earlier in the year – as well as the eliminations of non-value-added costs, were behind its savings projections.
In 2018, 2019 and 2020, Tyson expects cumulative net savings of $200 million, $400 million and $600 million respectively.
The savings will mainly impact the company’s prepared foods and chicken segments, focusing on three areas: supply chain, procurement and overhead.
Tom Hayes, Tyson’s president and CEO, said the company is implementing its previously-announced ‘financial fitness’ plan.
“We are creating momentum behind our continuous improvement agenda as we know we can be even more efficient operators,” he said.
“We are a good partner for growth for our customers and are constantly challenging ourselves to identify opportunities to create value for our consumers, customers and shareowners.”
Speaking of the lay-offs, he added: “We’re grateful to everyone who has contributed to the company’s success, and we’re thankful for their time with Tyson Foods.
“These are hard decisions, but I believe our customers and consumers will benefit from our more agile, responsive organisation as we grow our business through differentiated capabilities, deliver ongoing financial fitness through continuous improvement and sustain our company and our world for future generations.”
In its fiscal fourth quarter earnings report, Tyson Foods plans to report restructuring and other charges of approximately $140-$150 million, composed of approximately $70 million impairment for costs related to in-process software implementations, $45-$50 million in employee termination costs and $25-$30 million in contract termination costs.
Earlier this month, Tyson revealed it plans to build a $320 million poultry complex in eastern Kansas, which will create 1,600 jobs.
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.