UPDATE: CANADA: More job cuts expected at Maple Leaf
Maple Leaf eyes savings following Canada Bread sale
More job cuts are likely to result from Maple Leaf Foods' move to realign its organisational structure after the group sold off its bakery unit earlier this year.
The company revealed a senior management shake-up this morning (27 March) as it works to "right size" its business. The news comes in the wake of the disposal of its majority-owned bakery unit, Canada Bread, which was sold to Grupo Bimbo.
At the "most senior level" Maple Leaf said Maple Leaf financial executive Debbie Simpson will succeed Michael Vels as CFO, while Gary Maksymetz will replace Richard Lan as chief operating officer. The company did not, however, detail whether further redundancies would follow.
"Once the bakery transaction closes we will make organisational changes to right size our structure to meet the needs of Maple Leaf Foods going forward. We are not in a position to disclose any details at this time; these changes will occur once the transaction closes," a spokesperson for the company told just-food.
"We're looking across our organisation to make sure we put the right structure in place," the spokesperson added.
The group declined to provide further details on possible job losses.
One industry insider suggested management is yet to look at lower level job reductions "in depth" as that decision is somewhat dependant on Bimbo's plans for the bakery business.
Additional job reductions are therefore expected over the course of the year and severance costs will be attached to these, the source indicated. Separately in its announcement earlier today, Maple Leaf said it would specify the charges it will incur when it reports its first-quarter numbers.
The company has targeted cost C$65m (US$58.8m) in dissynergies, just-food understands. It is believed that $10-15m could come from workforce reductions.
The acquisition in September 2011 of Cía de Alimentos Fargo by Grupo Bimbo will emphasise a strong diversification strategy towards value-added bakery products, and secure future capital investment in...
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