JM Smucker plans to lay-off scores of workers at a Hostess Brands’ office, the indulgent snacks business the food group acquired in a $5.6bn deal last year.
A so-called regulatory Worker Adjustment and Retraining Notification Act (WARN) notice filed with KansasWorks last week said 79 workers at Hostess Brands’ Lenexa office are affected.
The jobs will be lost in batches starting from 7 September ahead of a plan to permanently close the Johnson County, Kansas, site.
JM Smucker confirmed via a statement from a spokesperson: “Following a thorough review of our operating model and business needs as we coordinate the integration of Hostess Brands, we have announced an update to our organisational structure and the decision to close our office in Lenexa, Kansas.
“With these decisions, some employees currently supporting the business will be exiting the company. These employees will be fully supported as they transition, per our established outplacement processes.”
The planned lay-offs and office closure have emerged around the same time as speculation that JM Smucker is gauging buyer interest in its Voortman Bakery cookies and wafers business.
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By GlobalData
According to a Reuters report, the US food group is working with Goldman Sachs to see what interest there could be in the business unit it acquired when it bought Hostess Brands.
JM Smucker reported its fiscal 2024 results in June, showing sales were down 4% at $8.2bn. However, excluding acquisitions, divestitures and foreign exchange, they increased 8%.
Mark Smucker, chairman, president and CEO, said: “Our transformed portfolio, including the acquisition of Hostess Brands during the fiscal year, has strengthened our business for long-term profitable growth across our key platforms of coffee, Uncrustables frozen sandwiches, dog snacks and cat food, and sweet baked snacks.
“Looking ahead, fiscal year 2025 will be a year of investment in our brands, capabilities, and talented employees, who have been instrumental to our success.
“Our strategy is working and our priorities are clear: deliver our core business, successfully integrate the Hostess business, achieve our synergy aspirations, and advance our transformation and cost discipline activities.”
