JM Smucker is taking steps to streamline its operations by laying off workers at the Hostess Brands office it acquired last year in a $5.6bn deal. According to a WARN notice filed with KansasWorks, 79 workers at Hostess Brands’ Lenexa office will be affected, with jobs being lost in batches starting from September 7th before the site is permanently closed.
In a statement, a JM Smucker spokesperson confirmed the decision, stating that it comes after a thorough review of their operating model and business needs in light of integrating Hostess Brands. The affected employees will be supported through the transition with established outplacement processes.
The company is also exploring potential interest in its Voortman Bakery cookies and wafers business as part of its ongoing strategic evaluation. This news coincides with the announcement of layoffs and the closure of the Hostess Brands office.
JM Smucker reported a 4% decrease in sales to $8.2bn for fiscal year 2024, excluding acquisitions, divestitures, and foreign exchange, sales actually increased by 8%. The chairman, president, and CEO, Mark Smucker, highlighted the acquisition of Hostess Brands as a key part of the company’s success, alongside other core business areas.
Looking ahead to fiscal year 2025, Smucker emphasized a focus on investing in brands, capabilities, and employees to drive long-term growth and profitability. The company’s strategy includes delivering core business, integrating acquisitions like Hostess Brands, achieving synergy goals, and implementing cost-saving measures.
As JM Smucker continues to evolve its business strategy, the company is working with Goldman Sachs to gauge interest in its acquired business units. This proactive approach is part of the company’s efforts to stay competitive and drive growth in the dynamic food and beverage industry landscape.
