January 19, 2007

Swift lays off staff to cut costs

US beef company Swift & Co. said Thursday (Jan 18) it laid off 58 employees in its corporate offices as one of several cost-cutting steps it is taking to increase its competitiveness, cutting 10 percent of its corporate staff. 

The affected workers would receive severance, continued health benefits and assistance in finding new jobs, the company indicated.

Swift also said it will not fill 12 job vacancies in Greeley, and will reduce expenses related to contract services and professional fees.

Swift's President and CEO Sam Rovit said the layoffs were part of a plan undertaken last fall.

The cost reductions are expected to generate up to US$15 million in net annualized saving by May, which marks the end of the company's fiscal year.

The company's efforts to ship beef to Japan met with little improvement after the market was opened to US beef last year. One of its shipments was returned after a box of thymus glands were found inside the beef shipment.

Immigration raids on undocumented workers also caused a disruption to its operations last month. The company's reputation also took a hit in December when an industry group lambasted it for declaring hundreds of carcasses safe after it has been inadvertently treated with waste water. After the carcasses were washed, Swift applied approved treatment and biological testing to ensure that the beef were not contaminated.