Campbell’s restructuring slashes jobs, shuts plants
The job cuts will include about 130 positions at its Camden headquarters, and about 190 positions related to its US retail merchandizing unit, which will be outsourced to Acosta Sales and Marketing, the company said. Campbell’s also said 190 jobs would be eliminated at its Australian biscuit plant, as it moves to an automated packing system.
In the United States, where its soup sales have continued to slump, Campbell’s said it would close its manufacturing facility in Marshall, Michigan, and shift production of ready-to-serve soups from Paris, Texas to its facilities in Napoleon, Ohio and Maxton, North Carolina, both of which already produce ready-to-serve soups. The Paris plant would continue to produce other soups, sauces and beverages, while the Maxton plant would produce microwavable soups, the company said.
After four years in the Russian market, Campbell’s said it would close its Moscow office, eliminating 50 positions.
Chief operating officer Denise Morrison, who is due to take over as CEO in August, said: “Though Russia remains an attractive potential growth market, the results of the business we launched in that market in September 2007 have fallen short of original expectations. We believe that opportunities currently under exploration in other emerging markets, notably China, offer stronger prospects for driving profitable growth within an acceptable time frame."
The company said it expects its plans to reap annual pre-tax earnings from the measures of about $60m in fiscal 2012, increasing to about $70m in fiscal 2014.
Last month, the company reported an 11 percent boost in third quarter profits, to $187m, while sales grew one percent to $1.81bn. Higher snack sales offset declining soup sales during the quarter, although the company had previously reported losses in three consecutive quarters.
