Sara Lee layoffs not expected to affect local jobs
Published 11:09 pm Monday, January 29, 2007
Officials with the Sara Lee Corp. said Monday the company will lay off nearly 1,700 employees as part of a reorganization plan to increase business performance.
Employees at the Meridian Sara Lee bakery plant will not be affected.
About 1,200 workers in Mississippi will be laid off when the company closes its pork processing and FlavoTech spice production plants in West Point on March 30. Workers were told of the layoffs Monday morning.
‘‘Unfortunately, after looking at our business, we determined that these facilities will not allow us to meet our efficiency or long-term profitability expectations,’’ Ken Brandenburg, vice president of operations in the company’s food and beverage division, said in a statement.
Vice president of Sara Lee’s Media Development/Communications Department, Jon Harris, said Monday that while the layoff of 1,200 workers is unfortunate, this will not affect Meridian employees.
“Closing the West Point facility was a very difficult decision,” Harris said.
“Our employees are our primary concern. We started speaking with each employee and will continue tomorrow to speak to all employees and provide severance. We’re working with the state and employment agencies to help facilitate any transition for these employees.”
Harris said the layoffs will not affect operation of the Sara Lee corporation and that clients will continue to receive products on time.
Mississippi Gov. Haley Barbour said the layoffs are ‘‘clearly bad news.’’
‘‘The state will respond aggressively by immediately offering job search services and training opportunities through the Mississippi Department of Employment Security,’’ Barbour said in a news release.
Downers Grove, Ill.-based Sara Lee said another 489 workers will be laid off around the globe as part of the restructuring. Those layoffs will result in a $40 million pretax charge.
The 1,700 jobs represent about 3 percent of the company’s overall work force of 54,000.
The company said it will take a $152 million noncash pretax charge in the quarter ended Dec. 30, 2006, mainly due to continued declines in its Brazilian coffee operation. That figure includes a $34 million charge to close the Mississippi factories.
Sara Lee shares rose 8 cents to $17.18 in late afternoon trading Monday on the New York Stock Exchange.
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