Hormel Foods announced a corporate restructuring on Nov. 4 that will result in the reduction of 250 corporate and sales positions. The company says this restructure is designed to “align resources with the organization’s strategic priorities, support future growth and strengthen the overall business.”
A voluntary early retirement program for a portion of its non-plant workforce will be implemented to help close many open roles while reducing certain positions across its office-based workforce.
“We approached every decision with care and respect for our team members,” Jeff Ettinger, interim chief executive officer of Hormel Foods, said in a release. “Our focus is on providing support and resources to those impacted as they transition from the company.”
The restructuring reflects the company’s ongoing focus to balance cost discipline with reinvestment in areas critical to its future, the release said.
“Hormel Foods remains focused on growth — and growth requires continued investment,” explained John Ghingo, president of Hormel Foods. “We’re directing resources toward technology, innovation, food safety and quality, and the capabilities — including people capabilities — that will shape our future. We’re confident that our ongoing investments will strengthen our brands, improve efficiency and ensure Hormel Foods stays competitive and responsive to the needs of our consumers and customers.”
The company expects to incur restructuring charges in the range of $20 million to $25 million in connection with this restructuring. All the charges are expected to be related to one-time pension benefits, cash severance payments, stock compensation expenses and employee benefit costs. Hormel Foods expects most of the charges will be incurred in the fourth quarter of fiscal year 2025 and the first quarter of fiscal year 2026.
“Each person who is leaving has contributed to our organization, our culture and our success. We’re grateful for everything they’ve done,” Ettinger said.
