Campbell’s Announces Workforce Reductions as Part of $500M Cost-Cutting Plan
The Campbell's Company announced the reduction of its salaried workforce by 13% to support a broader cost-cutting initiative aimed at saving $500 million by 2030. The move is part of CEO Mick Beekhuizen’s strategy to improve performance, protect margins, and redirect savings toward brand investments. In addition to layoffs, Campbell's will close two snack plants and reduce its quarterly dividend by 36%. These actions follow a fourth-quarter loss with sales declining 8% year-over-year to $2.14 billion. The company’s snacks business saw the most significant drop in revenue—falling 12%, while meals and beverages declined 4%. Campbell's expects continued challenges, forecasting organic sales declines of between 2% and 4% for fiscal 2027 due to ongoing consumer spending restraint. The cost-cutting plan is intended to improve speed, accountability, and cash flow in a difficult operating environment marked by elevated costs and competitive pressures. Analysts have expressed skepticism about the effectiveness of these measures given Campbell's recent performance trends, particularly in its salty snack segment where sales dropped 9.4%. Beekhuizen acknowledged that turning around the snacks business will require significant effort.
Topics: cost-cutting dividend_cut sales_decline workforce_reduction