Hormel Foods Announces Corporate Restructuring to Support Long-Term Growth
Company to realign resources, streamline operations, and reinvest in innovation and efficiency
Hormel Foods Corporation, a Fortune 500 global branded food company, announced a corporate restructuring designed to align resources with the organization's strategic priorities, support future growth and strengthen the overall business.
To ensure the company remains efficient and well-positioned for long-term success, Hormel Foods has implemented a voluntary early retirement program for a portion of its non-plant workforce, is closing many open roles and will reduce certain positions across its office-based workforce. These actions are expected to result in the reduction of approximately 250 corporate and sales positions.
"We approached every decision with care and respect for our team members," said Jeff Ettinger, interim chief executive officer, Hormel Foods. "Our focus is on providing support and resources to those impacted as they transition from the company."
The restructuring reflects the company's ongoing focus on balancing cost discipline with reinvestment in areas critical to its future.
"Hormel Foods remains focused on growth — and growth requires continued investment," said John Ghingo, president, Hormel Foods. "We're directing resources toward technology, innovation, food safety and quality, and the capabilities — including people capabilities — that will shape our future. We're confident that our ongoing investments will strengthen our brands, improve efficiency and ensure Hormel Foods stays competitive and responsive to the needs of our consumers and customers."
In connection with this restructuring, the company expects to incur restructuring charges in the range of $20-$25 million. Substantially, all the charges are expected to be related to one-time pension benefits, cash severance payments, stock compensation expenses, and employee benefit costs. Most of the charges are expected to be incurred in the fourth quarter of fiscal year 2025 and the first quarter of fiscal year 2026.
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