Snyder’s-Lance says it will cut jobs to trim expenses
07/01/2014 10:52 AM
07/01/2014 10:58 AM
Charlotte-based Snyder’s-Lance Inc. said it will soon begin a major expense-reduction program that will involve job cuts and changes to the company’s operations.
The nation’s second-largest snack maker offered few details on how the cost-cutting would be carried out. In the statement, Snyder’s-Lance said executives would outline their plans further when the company reports second-quarter earnings next month.
The company, which had total expenses of $1.6 billion in 2013, hopes to save about $22 million to $25 million each year. The effort is expected to start in the third quarter, which began Tuesday.
“This is a major initiative for the company to ensure its cost base is managed aggressively,” the company said in a statement Monday.
Snyder’s-Lance earned $16.8 million in the first quarter, down 15 percent from the year before. The company’s products include Lance crackers, Snyder’s of Hanover pretzels and Cape Cod chips.
The moves come as Snyder’s-Lance completes the sale of its private brands business to Ohio-based Shearer’s Foods LLC. The firm also took on two Snyder’s-Lance manufacturing facilities in the $430 million deal. The private brands business makes cookies and crackers under names that are alternatives to national brands.
Snyder’s-Lance has about 5,700 employees across the company. About 1,500 are in Charlotte. The company has corporate offices in Ballantyne and a manufacturing facility on South Boulevard near Interstate 485.
Snyder’s-Lance representatives did not respond to requests for comment Tuesday.
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