Campbell's to layoff 400

[UpInArms]

http://www.philly.com/mld/philly/news/9004915.htm?1c

Campbell Soup Co. will eliminate 400 jobs, including 165 positions at its Camden headquarters, in a move expected to save $40 million annually.

In today's announcement, which came in advance of a management meeting with analysts and investors in Camden this morning, Campbell lowered its annual earnings per share growth target from 8 percent to the range of 5 percent to 7 percent.

Growth in Campbell's ready-to-serve soup lines, such as Chunky, Select and Soup at Hand, has been strong, but sales of condensed soups have continued to decline at a faster rate than expected.

Campbell president and chief executive officer Douglas R. Conant called the layoffs - the company's largest since 1996 - a "fine-tuning" of its workforce made possible in part by the combination of Campbell's U.S. soup, sauces and beverages businesses into one unit in February.

<snip>

"The cost increases that are surfacing throughout the food industry are very real," Conant said. He said Campbell should be able to continue offsetting higher costs through pricing and productivity improvements.

...more...

fewer workers and higher prices?