- The hints are confirmed: ConAgra will lay off 1,500 non-plant employees, about 30% of the company's office-based workforce, the company said Thursday. ConAgra will reduce costs by outsourcing technology and back office positions as well as introducing zero-based budgeting, a tactic growing in industry popularity (i.e. Coca-Cola, Campbell Soup, Heinz).
- ConAgra Foods has also confirmed rumors that it will be moving its company headquarters from Omaha, NE, to Chicago.
- The company "expects to save at least $300 million within the next three years as a result of the cost cuts, with about $200 million coming from the job cuts," according to St. Louis Post-Dispatch.
"Locating our headquarters and our largest business segment in Chicago places us in the heart of one of the world's business capitals and consumer packaged goods centers, enhancing our ability to attract and retain top talent with a focus on brand building and innovation," ConAgra CEO Sean Connolly said in a statement.
The company expects about $345 million in one-time restructuring charges over the next two to three years.
About 700 employees, including senior leadership and parts of its Consumer Foods business, will head to new offices in Chicago's Merchandise Mart starting next summer.
"The company will continue to maintain a significant presence in Omaha, including approximately 1,200 employees within key administrative functions, as well as research & development and supply chain management," KETV reported.
"Today's announcements are important milestones as we continue to execute against our strategic plan to build a focused, higher-margin, more contemporary and higher-performing company," Connolly said in a statement. "We are making difficult, but necessary, decisions to enhance productivity, drive standardization and enhance flexibility to deliver improved profitability. And through our organization redesign, we will better harness the power of our front line by deploying our talent against our largest opportunities for future growth and value creation."