Dive Brief:
- ConAgra Foods has informed its employees that the company will be making some of the recently-warned Omaha, NE, job cuts.
- The company will cut about 40 information technology jobs over the next six months. Most of the jobs are either redundant or will be outsourced.
- "Those workers supported a project to roll out a supply-chain management system in ConAgra plants," Associated Press reported.
Dive Insight:
Earlier this month, ConAgra CEO Sean Connolly announced that the company would be moving its headquarters from Omaha to Chicago, as well as cuts of about 1,500 non-plant employees, or about 30% of the company's office-based workforce. The job cuts are part of a three-year, $300 millon cost-cutting plan.
These cost-cutting measures are more common as more companies, particularly processed foods companies, are seeing sales dip. Last quarter, ConAgra reported a 1.1% uptick in sales, but profit fell significantly due to costs associated with reclassifying its private brands sector as discontinued operations in preparation for a planned divestiture.