February 18, 2009
Smithfield restructuring won't affect hog slaughter capacity
Multiple changes announced by Smithfield Foods (SFD) early Tuesday (February 17) in cost cutting measures will not affect the company's hog slaughtering capacity, a company spokesman said.
The nation's largest hog producer and pork processor in a release said it would close six processing plants and streamline operations at others.
Jerry Hostetter, spokesman for Smithfield Foods, said in an e-mailed reply that "none of the plants affected are slaughter plants." The plants produce further processed meats such as smoked spiral sliced hams, packaged meats and some fresh pork cuts.
In addition, the company will consolidate the sales groups of its Farmland Foods and John Morrell pork divisions.
Market analysts said the changes made by Smithfield are centred on reducing costs for the company, making it more efficient. About 1,800 jobs will be affected, the company said.
"Layoffs and plant closings are difficult but necessary decisions," said C. Larry Pope, president and chief executive officer. "We know that this will create adversity for the employees affected and we will work with union officials and others to determine how we can provide assistance to our employees to find future employment. Also, we will be transferring many employees to other plants."
