The Simply Good Foods Company is to cut jobs as the US food and drinks group looks to reduce costs and speed-up decision making.
In a statement yesterday (21 April), the Colorado-based company said it plans to cut around 15% of overall staffing levels compared with its "prior plans".
Just Drinks has asked Simply Good Foods how many staff will be affected and in which parts of the business they work.
Earlier this month, the Atkins and Quest brands owner posted a second-quarter loss of almost $160m amid impairment charges and a 9% fall in sales. The company cut its outlook for sales and profits.
Simply Good Foods said yesterday its moves are designed to lower overheads, streamline the organisation and enable “faster decision making” as it positions the business for its “next phase of growth”. The changes are expected to generate about $17m in annual cost savings.
President and CEO Joe Scalzo, who rejoined the company in January, said: “Decisions that impact our people are not taken lightly and I deeply appreciate the contributions of everyone in our organisation.
“At the same time, I believe realigning our business and leadership model will prove critical to improving our entrepreneurial accountability, financial discipline, and operational rigour to advance performance across our portfolio and generate greater value for our shareholders.”
Alongside the cost-savings programme, Simply Good Foods announced changes to its executive leadership team.
They included chief legal and corporate development officer Timothy Kraft has been promoted to chief administrative officer, taking oversight of legal, risk, compliance, human resources, M&A and nutrition.
Meanwhile, chief supply chain officer Jason Bendure will report to Scalzo on “a range of strategic projects” over the next several months before leaving the business.
