OAK BROOK, ILL. — TreeHouse Foods, Inc. said it will close its office in St. Louis on June 28. The company said the decision is part of its previously announced TreeHouse 2020 multi-year restructuring program to reduce cost structure and administrative footprint and to align the company with current and future needs.
The closing will affect approximately 170 employees. TreeHouse said work currently being done in St. Louis will be consolidated into the company’s other facilities in Oak Brook.
“We appreciate the contributions that the employees at the St. Louis location have made over time,” said Steven T. Oakland, president and chief executive officer of TreeHouse. “Our decision to close St. Louis was not taken lightly, and we are committed to providing employee assistance through this challenging transition. As we streamline our organization into four divisions (from five) and build our commercial excellence capabilities, it is both prudent and strategic that we also consolidate our administrative locations.”
Costs associated with the closing are expected to be incurred over the three quarters ending June 30 and will total approximately $7.8 million.
As part of the company’s TreeHouse 2020 restructuring effort, management is committed to reducing its overall manufacturing structure by 20% and reduce stock-keeping units by 25%.
Steps taken during the 2018 fiscal year to achieve its goals included the closing of manufacturing plants in Plymouth, Ind., and Brooklyn Park, Minn., and decommissioning 19 manufacturing lines. Additional steps taken in fiscal 2018 included the partial closing of a plant in Dothan, Ala., the full closure of plants in Battle Creek, Mich., and Visalia, Calif., and the decommissioning of 15 additional manufacturing lines.
The company also plans to close its office in Omaha, Neb., by Jan. 31. TreeHouse said it expects to incur approximately $6 million in costs associated with the Omaha facility closing. The facility serves as an operations center for TreeHouse, with employees working in customer service, information technology, procurement, research and development, and supply chain.