Hormel Foods cutting 250 jobs from corporate workforce – Twin Cities

Hormel Foods is cutting approximately 250 office roles from its workforce through early retirements and layoffs as part of a restructuring to “thoughtfully align resources.”

The giant Austin, Minn.-based food brand announced the cuts to its corporate and sales areas on Tuesday. The cuts will not impact workers in the food processing plants, according to Hormel.

The restructuring announcement did not state whether the 250 roles are being cut from its corporate offices in Austin or from other facilities in the company.

Of the approximately 3,300 Hormel employees based in Austin, 1,400 employees work in the corporate offices, according to Hormel’s website. Hormel also employs 1,900 people at its Austin processing plant.

Hormel said most of the changes are expected to be effective by the end of 2025. The company said that estimated restructuring charges of $20 million to $25 million are expected to be incurred in the fourth quarter of fiscal year 2025 and the first quarter of fiscal year 2026.

That estimated $20 million to $25 million includes one-time pension benefits, cash severance payments, stock compensation expenses and employee benefit costs.

“Our focus is on providing support and resources to those impacted as they transition from the company,” said Interim CEO Jeff Ettinger. “Each person who is leaving has contributed to our organization, our culture and our success. We’re grateful for everything they’ve done.”

The maker of SPAM described the restructuring as part of the “company’s ongoing focus on balancing cost discipline with reinvestment in areas critical to its future.”

Hormel Foods President John Ghingo addressed that rebalancing.

“We’re directing resources toward technology, innovation, food safety and quality, and the capabilities — including people capabilities — that will shape our future. We’re confident that our ongoing investments will strengthen our brands, improve efficiency and ensure Hormel Foods stays competitive and responsive to the needs of our consumers and customers,” he stated in the announcement.