SunOpta Announces it Will be Cutting 6% of its Workforce and Restructuring its Business
The Consumer Products Group will be comprised of the Frozen Foods and Healthy Snacks operations, which were part of the former Fruit Group, and the Food Solutions operations which were formerly part of the International Foods Group. As part of this restructuring the Fruit Ingredient operations of the former Fruit Group have been consolidated with the existing Ingredients Group.
Feb 28 2012 --- SunOpta Inc has announced that it will be cutting around 6% of its workforce in order reduce annual operating costs by $3 million.
This is part of a wider process of streamlining its operations and organizational structure, addressing underperforming food based operations and targeting improved earnings, predictability and return on assets.
In order to streamline operations, drive efficiencies and better align product innovation and commercial activities, the Company has commenced restructuring SunOpta Foods to align its operating segments with the markets and customers serviced, rather than by product groupings.
As a result, the former Fruit Group has been eliminated and a new Consumer Products Group has been created to focus on non-grains based consumer packaged goods. The Consumer Products Group will be comprised of the Frozen Foods and Healthy Snacks operations, which were part of the former Fruit Group, and the Food Solutions operations which were formerly part of the International Foods Group. As part of this restructuring the Fruit Ingredient operations of the former Fruit Group have been consolidated with the existing Ingredients Group.
Steve Bromley, President and Chief Executive Officer of SunOpta, further commented, "These decisions and activities are important to our Company's development as a global leader in natural and organic foods. We have grown rapidly over the last ten years and built a solid organization within markets that we feel are poised for long term growth.
“We believe there is much more that can be accomplished and this realignment and rationalization is a key step in addressing our Company's true potential, improving our operational performance and positioning SunOpta for continued success."
The International Foods Group will now be comprised of the Company's international sourcing and supply operations (Tradin Organic) and the operations of Purity Life Health Products. The Grains and Foods Group will remain unchanged.
With this realignment, SunOpta Foods will consist of four operating segments; Grains and Foods, Ingredients, Consumer Products and International Foods. The Company will begin reporting segmented information based on its new operating segments for the quarter ending March 31, 2012.
The Company is also actively working to address certain underperforming business operations in the Food Group and is taking specific measures which are expected to improve future earnings and generate positive cash flow over the course of the year. This undertaking is consistent with the Company's objective of focusing on value-added food businesses which align with established operating income targets.
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