ConAgra cuts jobs and moves to the Windy City
ConAgra, the parent company for many household names, is cutting jobs and moving its headquarters out of Nebraska in effort to improve sales.
Flags fly over ConAgra Foods world headquarters in Omaha, Neb. ConAgra Foods Inc., said Thursday, Oct. 1, 2015, it is getting rid of about 1,500 jobs, or approximately 30 percent of its global workforce, as part of a restructuring plan aimed at lowering costs and improving its performance. The packaged foods maker is also moving its headquarters from Omaha, Neb., to Chicago.
(Nati Harnik/AP)
ConAgra, whose products include Slim Jim, Chef Boyardee, and Orville Redenbacher, announced a major company restructuring Thursday that will include a move to Chicago and 1,500 job cuts.聽
The company, which has聽, confirmed that the job cuts are planned for their corporate offices and not the production plants. The 1,500 layoffs represent about 33% of the company's office-based personnel.
And why Chicago?
Moving its headquarters to the Windy City will bring the company 鈥渢o the heart of one of the world鈥檚 business capitals and consumer packaged goods centers,鈥� . The company also hopes the move in the consumer food business.
When about move to Chicago鈥檚 Merchandise Mall next year, they will join other food companies such as Tootsie Roll Industries Inc and Quaker Oats Co. Kraft Heinz is also planning an upcoming move to Chicago.聽
With these changes, within the next three years, a significant figure for the company since it has only reported an increase in net sales twice in the last six quarters. Last month, ConAgra reported a first-quarter loss of $1.2 billion.
ConAgra announced in June that it will sell Ralcorp, after buying the company two years ago for . Jana Partners, a major stockholder in ConAgra, pressured the company to sell Ralcorp, citing the acquisition for the poor results.
ConAgra鈥檚 rivals, such as Campbell Soup Co, General Mills, and Kraft Heinz Co, have recently made similar cuts as consumers .
Omaha leaders are worried about the move鈥檚 economic impact on their city. After Omaha Mayor Jean Stothert met with ConAgra executives and offered them incentive packages to stay, she told the Omaha World-Herald, 鈥淚 didn鈥檛 hear what I wanted to hear.鈥澛�
that 鈥渢his decision by ConAgra Foods further solidifies Chicago鈥檚 role as one of the world鈥檚 leading destinations for food processing companies.鈥澛�
said the company will 鈥渞etain a major presence in Omaha, where we have deep roots,鈥� with a base of 1,200 employees. the company changed its name to ConAgra in 1971 and then moved to Omaha in 1988.
Omaha is also home to , such as Mutual of Omaha, Union Pacific, and Warren Buffet鈥檚 Berkshire Hathaway.聽