Dive Brief:
- Changes are coming to ConAgra Foods, and CEO Sean Connolly warned Friday that this likely means layoffs. Employees will learn about the changes this week.
- The changes also may include a shift in Omaha, NE, operations with a greater focus on Chicago, where Connolly lives. The company employs around 3,000 people in Omaha and Lincoln, NE, and Council Bluffs, IA.
- According to Christopher Karcher, vice president of ConAgra corporate affairs, none of the decisions are final.
Dive Insight:
The company reported a $1.24 billion net loss Tuesday in its latest earnings report, stemming from charges in conjunction with ConAgra's private brands. It reclassified this department as discontinued operations, as it has a planned divestiture of the business.
ConAgra has about 31,500 employees across the world.
Connolly's tenure as CEO of the company is relatively fresh, though he's no stranger to changes like this. As Hillshire Brands CEO — his job before this one — he eliminated 1,100 jobs, shut down an Alabama plant, and prepped the company for its sale to Tyson Foods.
Late morning trading Friday had shares up 70 cents to approximately $41.76.