No cost cutting plan in Tyson
Written on February 1, 2008
A big cost-cutting program is not likely this year at Tyson Foods Inc. (TSN.N: Quote, Profile, Research), the nation’s largest meat company, even as it struggles with losses in beef and possible losses in chicken, said the company’s chief executive.
“I don’t see us doing a massive CMI (cost management initiative). I don’t see us doing that again,” CEO Richard Bond told Reuters in an interview ahead of the company’s annual meeting here on Friday.
CMI is the term the company uses to describe the layoffs and plant closings it undertook about a year ago after the company posted nearly $200 million in losses in fiscal 2006. In all the cost-cutting resulted in annualized savings of $265 million.
The action worked and the company earned $268 million in 2007.
Now, the company is struggling again, this time hurt by high feed prices for its chickens and tight supplies of cattle that supply its beef plants.
Instead of massive cutbacks, Bond said the company will largely work within its recently realigned operations to weather the pending difficulties.
However, the company last week did say it was ending slaughter at its Emporia beef plant, resulting in the lay off about 1,500 workers http://paydayloans-on.com. Many of those workers are expected to find jobs at other Tyson plants, the company said.
TYSON TO STICK WITH BEEF