Smithfield Foods Layoffs NewsSmithfield Foods Inc. has made an announcement saying that it will layoff around 1800 jobs and close 6 of its 40 processing plants as part of its restructuring program. The closure of six factories will affect around 3.4% of its total workforce or 3000 employees. However not all 3000 employees will be fired - some willbe relocated as part of the restructuring that will eliminate four independent operating companies.
Smithfield is the world's largest pork producer by revenue. Smithfield accounts for around a third of the US processed pork market.
Reasons for Smithfield Layoffs announcement, Smithfields redundanciesThe restructuring announced by Smithfields is expected to translate into a saving of $55 million in fiscal year 2010 and $125 million by 2011. In addition to being hit by loss making hedges, Smithfield foods is hit by consumers switching to white-lable offerings from branded products. In addition, exports are expected to slow amid weakening economic growth and a possible strengthening of U.S. dollar.
source: WSJ, AP