TreeHouse Foods to Cut 150 Corporate Jobs in a Cost-Saving Move
TreeHouse Foods, a private-label food and beverage maker, has announced plans to cut 150 jobs as part of an effort to centralize and reorganize its corporate support functions in order to improve efficiency. The company’s chief commercial officer, Scott Tassani, will be leaving on May 30, and his role will be eliminated. Tassani’s responsibilities will be absorbed by other senior leaders within the company.
The layoffs are designed to drive cost savings, enhance profitability, and improve cash flow for TreeHouse Foods. The company has been actively buying and selling businesses to improve its growth prospects and margins. However, TreeHouse has faced challenges in recent years, including two major recalls involving broth as well as waffles and pancakes.
TreeHouse Foods was created through more than 40 mergers, but CEO Steve Oakland has been working to transform the company into a leaner, more focused organization by reevaluating its vast portfolio. One of the company’s biggest moves was the sale of a large portion of its meal prep business for nearly $1 billion in 2022. Additionally, TreeHouse has acquired condiment brands, a pretzel manufacturer, a coffee production facility, and a tea business while focusing on its higher-growth snacking business.
Despite these efforts, TreeHouse Foods has faced challenges due to weak consumer spending, soft trends in certain categories, and inconsistent financial results resulting from the recalls. The company’s stock price, which peaked at over $100 a share in 2016, is now at its lowest level in 17 years.
In a statement, Oakland acknowledged the need for further improvement within the business, stating, “We continue to see significant opportunity to improve our execution and consistency, positioning us to better serve our customers while driving improved profitability.” The company is streamlining its organizational and cost structures to sharpen its competitiveness in the evolving consumer environment.
TreeHouse Foods’ corporate layoffs are part of a broader trend in the food industry, with other companies like Post Holdings also announcing job cuts and facility closures. The ongoing tariff situation is expected to have a minor impact on TreeHouse Foods, as only 5% of its net sales come from outside the U.S., primarily from Canada.
TreeHouse Foods will report its first-quarter results on May 6, providing further insight into the company’s financial performance and strategic direction.
