Soup boss tells Pepperidge to cut 11 jobs, four in state
Pepperidge Farm to lose four jobs in state, 11 total as soup maker cuts 770 worldwide
By Rob Varnon
Norwalk-based Pepperidge Farm will lose 11 jobs as part of the 770 cuts being made across all divisions of parent company Campbell Soup.
Anthony Sanzio, a Campbell’s spokesman, said Thursday that of the 11, Pepperidge Farm will lose four jobs in Norwalk. Pepperidge’s Bloomfield factory is not expected to be affected by the cuts, he said.
Campbell’s Baked Goods and Snacking division, which includes Pepperidge Farm, had sales of $527 million in the three-month period ended May 1, a 10 percent increase over the $477 million recorded in the same period in 2010.
Earlier this week, Campbell’s Chief Operating Officer and incoming Chief Executive Officer Denise Morrison announced the company would cut 770 jobs, including 130 at the soup giant’s headquarters in Camden, N.J.
Shares in Campbell’s lost 13 cents to $34.55 on the New York Stock Exchange Thursday.
Campbell’s had a total of 18,400 workers around the globe last year, according to SEC filings.
Reducing headcount will help the company lower costs and improve supply chain, manufacturing and marketing efficiencies, Morrison said in a June 28 statement. Campbell’s plans to close a Michigan plant, automate packaging in Australia, which will mean the loss of 190 jobs there and cut 510 salaried workers around the globe. The company said outsourcing its U.S. retail merchandising to Acosta Sales and Marketing will lead cut 190 jobs.
The company said the reductions will boost the bottom line by $60 million in the beginning of fiscal year 2012 and another $70 million the year after that. It expects the layoffs to cost it about $75 million, related to severance and other expenses.
Campbell’s net income rose to $186 million for the three months ended May 1, up from $168 million during the same period a year ago. But the company has experienced weakness in its core U.S. Soups, Sauces and Beverages division, which led to sales falling by $153 million for the first nine months of this fiscal year.