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ConAgra to cut 1500 jobs, move headquarters to Chicago
Posted On Oct 01 2015
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The move is part of the plan under new CEO Sean Connolly, who has said he aims to find greater administrative efficiencies, reinvigorate a few of the company’s household brands and sell off the company’s flagging private label business.
Other Chicago-based food companies include candy maker Tootsie Roll Industries Inc and PepsiCo Inc-owned Quaker Oats Co.
ConAgra is cutting about 1,500 jobs, or approximately 30 percent of its global, office-based workforce, and moving its headquarters to Chicago from Omaha, Nebraska, the company said Thursday.
ConAgra estimates it will incur cash charges of about $345 million over the next two to three years in connection with the restructuring.
Of this, about $200 million in savings are expected to be derived from a combination of lower headcount and non-headcount costs through the adoption of zero-based budgeting, simplifying organizational structure, and outsourcing technology as well as back office functions.
She said he also told her that however resources are allocated, Omaha will retain the largest number of the company’s employees. The Firm supplies commercial foods company serving restaurants and foodservice businesses, in addition to private and branded branded food in families.
The changes should create about $200 million in cost savings, with more than half of that realized by the end of fiscal 2017, according to ConAgra Foods. The company has been pressured by a major stockholder, Jana Partners, which says ConAgra’s results have been disappointing since it bought Ralcorp. for $5 billion two years ago.
ConAgra expects the restructuring plan to provide a modest benefit to fiscal year 2016 earnings.
Right now that home is Omaha but Crain’s Business Journal in Chicago reported Tuesday afternoon that a move from Omaha to Chicago is a done deal. Finally, Sanford C. Bernstein increased their price target on ConAgra Foods from $37.00 to $44.00 and gave the company a market perform rating in a research report on Friday, June 19th.
