Hormel Foods Announces Corporate Restructuring
LSI will assume supply contracts with third-party turkey growers that are dedicated to the whole-bird business and provide co-manufacturing services to Hormel Foods through the end of its fiscal 2026, to provide uninterrupted fulfillment of customer orders during the transition.
Hormel Foods Corporation, a Fortune 500 global branded food company, this week announced a corporate restructuring designed to 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.
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.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with approximately $12 billion in annual revenue. Its brands include PLANTERS, SKIPPY, SPAM, HORMEL NATURAL CHOICE, APPLEGATE, JUSTIN'S, WHOLLY, HORMEL BLACK LABEL, COLUMBUS, JENNIE-O and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report, one of America's most responsible companies by Newsweek, recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. The company lives by its purpose statement — Inspired People. Inspired Food. — to bring some of the world's most trusted and iconic brands to tables across the globe.
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!
