Campbell’s Soup, the US food and beverage manufacturer, has announced the closure of two snacks manufacturing facilities as part of a new $500 million enterprise-wide savings program designed to optimize operations, support margins and increase operational speed and accountability.
During an investor call, the company said the closures would affect snacks plants located in Hyannis (MA) and Jeffersonville (IN). The operational changes follow recently completed headcount reductions that lowered the company’s salaried workforce by approximately 13% .
The enterprise-wide savings program runs separately from annual productivity initiatives that target an average of approximately 3% of cost of products sold. The cost-reduction actions are designed to help fund commercial growth initiatives – including digital, social and influencer-led media campaigns – and support a return to profitable growth. Alongside cost reductions, the company is pursuing targeted net price realization supported by expanded revenue growth management capabilities.
Commenting on the restructuring, Campbell’s Soup chief financial officer Todd Cunfer noted: “Several actions are already underway, including the closure of two snacks plants in Hyannis and Jeffersonville, and recently completed workforce reductions. […] Together, these actions are designed to improve speed and accountability while supporting our margins and cash flow”.
Source: Campbell’s Soup
