Snyder’s-Lance Announces Another 250 Layoffs
Just days after cutting two dozen jobs at its corporate headquarters, Snyder’s-Lance Inc has announced another 250 layoffs. These layoffs will cut the company’s 6,100-strong workforce by four percent. The snack manufacturer based in Charlotte, North Carolina, has announced that the company is cutting the jobs in order to achieve cost savings. The layoffs will go into effect almost immediately.
According to a company spokesperson, the layoffs are a result of a downsizing effort that will affect the company’s global workforce at various locations. It has not been revealed how many positions will be cut in Charlotte in this round of layoffs. Earlier this month, 24 jobs were cut in the company’s accounting department in that city.
At the same time, the company has announced that it will be closing its manufacturing plant in Florida. That plant primarily produces chips, and will be closing by the end of September this year. It is safe to assume that the announced 250 layoffs will include employees working at the Florida plant.
Following the layoffs, Snyder’s-Lance CEO Brian Driscoll sent an e-mail to employees explaining the reason behind the layoffs. “This is a required first step to improve our financial performance, balancing costs and expected levels of profitability in a very competitive environment,” wrote Driscoll.
Snyder’s-Lance has been facing financial difficulties as its profits continue to decline. Following the last quarter’s disappointing financial results, the former CEO Carl Lee suddenly stepped down, making way for Driscoll, who was already on the Snyder’s-Lance board. Driscoll had previously served as the CEO of Diamond Foods, Inc., which was acquired by Snyder’s-Lance last year.
Driscoll is now taking aggressive actions, including layoffs and plant closures, in order to cut the company’s operating costs. He calls the ongoing efforts a part of a “transformation plan” to help turn around the company. The cost savings achieved from these efforts will help Snyder’s-Lance to stabilize its bottom-line numbers.
Snyder’s-Lance was formed by a merger between the Hanover, Pennsylvania-based company, Snyder’s of Hanover, and the Charlotte, North Carolina-based, Lance, Inc. The merger took place in 2010, although the two companies have separately been in business for over a century.
“Snyder’s-Lance lays off more Charlotte workers after firm’s ‘disappointing performance’,” The Charlotte Observer, July 25, 2017.