SMITHFIELD, Va. -- Smithfield Foods Inc. today released additional details of a restructuring plan that will consolidate and streamline the corporate structure and manufacturing operations of its pork group and make the company more competitive.
The plan will improve operating efficiencies and increase utilization.
As part of the plan, a reorganization will consolidate several business units:
Smithfield Foods will close six plants and transfer production to other facilities.
Wherever possible, Smithfield Foods will offer transfers to other company facilities to an undetermined number of employees. The company will work with employees and union officials, where applicable, to determine what assistance may be provided to affected employees to find future employment. Potential options include working and coordinating with area businesses and services to help find local opportunities for employees as well as coordinating with unemployment offices to assist employees with claims or job applications.
The company will comply with the federal Worker Adjustment and Retraining Notification Act (WARN), including providing a 60-day notification of plant closures to employees. Under the WARN Act, the company also will notify state dislocated worker units so that they can promptly offer dislocated worker assistance. WARN Act notices, where appropriate, are being issued today.
"Layoffs and plant closings are difficult but necessary decisions," said C. Larry Pope, president and chief executive officer. "We know that this will create adversity for the employees affected, and we will work with union officials and others to determine how we can provide assistance to our employees to find future employment. Also, we will be transferring many employees to other plants."
With sales of $12 billion, Smithfield Foods is the leading processor and marketer of fresh pork and packaged meats in the United States, as well as the largest producer of hogs.
SOURCE: Smithfield Foods Inc. via PR Newswire.