Hormel Foods, known for brands like Spam and Planters, has announced plans to cut 250 corporate and sales positions as part of a corporate restructuring. The company stated that it will be closing many open roles and reducing certain positions across its office-based workforce. Additionally, Hormel has introduced a voluntary early retirement program for a portion of its non-plant staff.
This strategic move is aimed at aligning resources with the organization’s priorities, supporting future growth, and strengthening the overall business. John Ghingo, president of Hormel Foods, emphasized that the company is focusing its resources on areas such as technology, innovation, food safety, and quality.
Ghingo expressed confidence in the company’s investments to strengthen its brands, improve efficiency, and remain competitive in response to consumer and customer needs. However, Hormel expects to incur restructuring charges between $20 million and $25 million due to pension benefits, cash severance payments, stock compensation expenses, and employee benefit costs.
Like other consumer packaged goods companies, Hormel has been grappling with declining sales and rising costs. The company has cited the impact of inflationary pressure, isolated disruptions such as bird flu and a fire at an Arkansas peanut butter plant. Hormel also recently saw the departure of its CFO and brought back former CEO Jeff Ettinger in an interim capacity.
The food and beverage industry has seen a wave of job cuts in 2025 as companies adjust to slowing demand. Nestlé, General Mills, and Molson Coors are among the firms that have implemented job cuts. Nestlé, in particular, announced plans to cut 16,000 jobs, representing about 6% of its global workforce, to accelerate its business turnaround.
Overall, Hormel Foods’ restructuring efforts reflect the ongoing challenges and changes within the food industry as companies navigate a shifting landscape to remain competitive and drive growth.
