US food group Sara Lee has announced its intention to outsource certain parts of its business, eliminating 700 positions, in an effort to cut costs.
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The company will outsource parts of its North American and European financing and global information services as well as its indirect procurement activities. Approximately 700 positions, including rolls currently performed by contractors, will become redundant.
The move is part of Sara Lee’s “accelerate” initiative, which aims to drive annualised benefits of US$200-250m over the next three years.
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“’Project Accelerate’ is designed to improve margins and drive shareholder value as we continue to build the long-term strength of the company,” Sara Lee chairman and CEO Brenda Barnes said.
“In addition to the cost savings, business process outsourcing will help Sara Lee further drive standardisation, increase efficiency and provide flexibility.”
Sara Lee expects to begin implementation of the initiative in North America in the current fiscal year, and plans to complete the scheme globally within three years.
The company is currently finalising contract specifics with an un-named third-party supplier.
