Copyright Austin Daily Herald
Hormel Foods Corporation announced Tuesday that it will be laying off approximately 250 corporate and sales positions as part of what it’s calling a corporate restructuring. In a press release it was explained that the move is designed to align resources with strategic priorities that will support future growth and strengthen the overall business. The release also explained the company is using a voluntary early retirement program for a portion of its non-plant workforce as well as closing many open roles and reducing certain positions across its office-based workforce. “We approached every decision with care and respect for our team members,” said Jeff Ettinger, interim chief executive officer, Hormel Foods. “Our focus is on providing support and resources to those impacted as they transition from the company.” Leadership is stating that restructuring reflects the company’s ongoing focus on balancing cost discipline with reinvestment in areas critical to its future, the release states. “Hormel Foods remains focused on growth — and growth requires continued investment,” said John Ghingo, president, 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.” These restructuring moves are expected to incur charges of around $20-$25 million and that all charges are expected to be related to one-time pension benefits, cash severance payments, stock compensation expenses and employee benefit costs. Most of the charges are expected to 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. While the release from Hormel doesn’t state why the company made this decision, reporting by the Minneapolis Star Tribune noted that so far this year, company stock is down 31% and sits at its lowest level in over 10 years.
