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.
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
Grupo Bimbo continues its global expansion policy, as the world’s second largest bakery company and primary bread producer. Bimbo is now active in Latin and North America, Iberia and China, mainly in ...
Grupo Bimbo SAB de CV is the leader in bakery in Mexico the company offers more than 100 brands which are distributed through a very strong logistics network through both modern grocery retailers and ...
"The Future of the Confectionery Market in Mexico to 2017: Market Size, Distribution and Brand Share, Key Events and Competitive Landscape" is the result of Canadean’s extensive market and company res...
- What are the implications of Brexit for UK food?
- Richelieu Foods CEO eyes growth - interview
- PepsiCo 2015 results, 2016 outlook - takeaways
- The mixed fortunes of Kellogg's two main US arms
- Mondelez results and outlook - 7 things to learn
- PepsiCo's Nooyi: "macro challenges" will continue
- WWF launches food security platform
- PepsiCo forecasts dip in sales growth in 2016
- Russia draws up plans for tax on palm oil
- Private-equity firm HKW acquires Panos Brands