JM Smucker confirms reshaping portfolio, corporate structure will ‘negatively impact our employees’


“Consumer behavior has evolved rapidly in recent years, and will continue to do so,”​ prompting JM Smucker to reshape its portfolio and restructure its corporate organization “to better support our business,”​ CEO Mark Smucker told analysts during the company’s third quarter earnings call Feb. 25.

“We really want to create a leaner and flatter organization, ensuring that we align ownership accountability, incentives and so forth to the financial statements, and we do have confidence this is going to make us more agile,”​ he said.

But, this also means “there are decisions that do negatively impact our employees,”​ which are “very difficult”​ and which the company takes “extremely seriously,” ​Smucker said.

“From time to time, there are moments when we need to ensure the long-term health of our business, and this is one of those moments,”​ he explained. “We have a very strong continuous improvement mindset, and this is one factor in that process.”

Without providing additional details about how many employees will be laid off or where in the business those roles will come from, Smucker assured analysts that the company is “making sure we treat our employees with the utmost respect, for those that would be exiting the organization.”

Currently, the company employs about 7,000 people across 30 production centers and in sales offices across the US and Canada.

Losses follow divestures, plans to discontinue SKUs

The pending losses will come after the company’s announcement in December that it will restructure as part of a larger effort to generate $50m in annual sales over each of the next three years.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *