Swift implements overhead-reduction program

by FoodBusinessNews.net Staff
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GREELEY, COLO. — Swift & Co. has outlined overhead cost reductions that it believes will enhance the company's competitiveness and boost its profitability. The expense-reduction program has been in development since September and is a broad-based plan that includes the elimination of certain corporate-level positions.

Swift expects the program to generate between $10 million and $15 million of annualized savings by the end of fiscal year 2008, with some savings realized immediately. A majority of the savings will come from such non-headcount areas as professional fees, contract services and other non-customer critical areas. A total of 70 filled and unfilled positions at the company’s Greeley, Colo., headquarters have been eliminated.

"To maintain our leadership position in a competitive and challenging industry environment, it is essential that we ensure strict fiscal discipline across all areas of our business," said Sam Rovit, president and chief executive officer of Swift. "Recent overhead expense trends were higher than historical levels, and accordingly we have identified ways to reduce spending while still being able to execute against our strategy and serve our customers’ needs."

The cost reduction plan is not tied to the recent ICE action at the company’s plants, said Mr. Rovit.

"Operationally we are well on our way to recovery, and we remain confident in our financial position," he said. "We anticipate no continuing impact on our business beyond May of this year."

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