Hormel Foods Announces Corporate Restructuring to Support Strategic Priorities and Long-Term Growth
Hormel Foods (NYSE: HRL) announced a corporate restructuring on Nov. 4, 2025 to align resources with strategic priorities and support long-term growth. The plan includes a voluntary early retirement program, closure of many open roles and reductions across the office-based workforce, expected to eliminate approximately 250 corporate and sales positions. The company expects restructuring charges of $20–$25 million, mainly for one-time pension benefits, cash severance, stock compensation and employee benefit costs, with most charges incurred in Q4 fiscal 2025 and Q1 fiscal 2026. Management said resources will be redirected toward technology, innovation, food safety and people capabilities to strengthen brands and improve efficiency.
Hormel Foods (NYSE: HRL) ha annunciato una ristrutturazione aziendale il 4 novembre 2025 per allineare le risorse alle priorità strategiche e supportare la crescita a lungo termine. Il piano prevede un programma di prepensionamento volontario, la chiusura di molte posizioni aperte e riduzioni nel workforce basato in ufficio, con l’obiettivo di eliminare circa 250 posizioni corporate e di vendita. L'azienda prevede oneri di ristrutturazione di 20–25 milioni di dollari, principalmente per benefici pensionistici una tantum, indennità di uscita in contanti, compensi azionari e costi relativi ai benefit per i dipendenti, con la maggior parte degli oneri sostenuti nel Q4 dell’esercizio fiscale 2025 e nel Q1 dell’esercizio fiscale 2026. La direzione ha dichiarato che le risorse verranno reindirizzate verso tecnologia, innovazione, sicurezza alimentare e capacità delle persone per rafforzare i marchi e migliorare l’efficienza.
Hormel Foods (NYSE: HRL) anunció una reestructuración corporativa el 4 de noviembre de 2025 para alinear los recursos con las prioridades estratégicas y apoyar el crecimiento a largo plazo. El plan incluye un programa voluntario de jubilación anticipada, el cierre de muchos puestos abiertos y reducciones en la fuerza laboral basada en oficinas, con la expectativa de eliminar aproximadamente 250 puestos corporativos y de ventas. La empresa espera cargos de reestructuración de 20–25 millones de dólares, principalmente por beneficios de pensión únicos, indemnización en efectivo, compensación en acciones y costos de beneficios para empleados, con la mayor parte de los cargos incurridos en el cuarto trimestre del año fiscal 2025 y el primer trimestre del año fiscal 2026. La dirección dijo que los recursos se redirigirán hacia tecnología, innovación, seguridad alimentaria y capacidades de las personas para fortalecer las marcas y mejorar la eficiencia.
Hormel Foods (NYSE: HRL)는 전략적 우선순위에 자원을 맞추고 장기 성장을 지원하기 위한 기업 구조조정을 2025년 11월 4일에 발표했습니다. 계획에는 자발적 조기 은퇴 프로그램, 다수의 채용 공석의 폐쇄 및 사무실 기반 인력 전반의 감축이 포함되며 약 250개의 법인 및 영업 직무가 사라질 예정입니다. 회사는 주로 일시적 연금 혜택, 현금 위로, 주식 보상 및 직원 복리후생 비용으로 구조조정 비용 2000만~2500만 달러를 예상하며, 대부분의 비용은 2025 회계연도 4분기와 2026 회계연도 1분기에 발생합니다. 경영진은 리소스를 기술, 혁신, 식품 안전 및 인재 역량으로 재배치해 브랜드를 강화하고 효율성을 높일 것이라고 말했습니다.
Hormel Foods (NYSE: HRL) a annoncé une réorganisation d’entreprise le 4 novembre 2025 afin d’aligner les ressources sur les priorités stratégiques et de soutenir la croissance à long terme. Le plan prévoit un programme de départs à la retraite anticipée volontaire, la fermeture de nombreux postes vacants et des réductions dans les effectifs basés au bureau, avec l’objectif d’éliminer environ 250 postes corporatifs et de vente. L’entreprise prévoit des charges de restructuration de 20–25 millions de dollars, principalement pour des prestations de pension uniques, des indemnités de départ en espèces, la compensation en actions et les coûts des avantages des employés, la plupart des charges devant être engagées au 4e trimestre de l’exercice 2025 et au 1er trimestre de l’exercice 2026. La direction a indiqué que les ressources seraient redirigées vers la technologie, l’innovation, la sécurité alimentaire et les compétences du personnel afin de renforcer les marques et améliorer l’efficacité.
Hormel Foods (NYSE: HRL) kündigte am 4. November 2025 eine Unternehmensneuordnung an, um Ressourcen an strategische Prioritäten anzugleichen und das langfristige Wachstum zu unterstützen. Der Plan sieht ein freiwilliges vorzeitiges Ruhestandsprogramm, die Schließung vieler offener Stellen und Reduzierungen der bürobasierten Belegschaft vor, mit der Erwartung, ca. 250 Positionen im Firmen- und Vertriebsbereich zu eliminieren. Das Unternehmen erwartet Restrukturierungskosten von 20–25 Millionen USD, hauptsächlich für Einmal-Pensionsleistungen, Barkündigungen, Aktienkompensation und Kosten der Mitarbeiterleistungen, wobei die meisten Kosten im Q4 des Geschäftsjahres 2025 und Q1 des Geschäftsjahres 2026 anfallen werden. Das Management sagte, Ressourcen würden auf Technologie, Innovation, Lebensmittelsicherheit und Mitarbeiterkompetenzen umgeleitet, um Marken zu stärken und die Effizienz zu verbessern.
Hormel Foods (NYSE: HRL) أعلنت عن إعادة هيكلة الشركات في 4 نوفمبر 2025 لتوجيه الموارد وفق الأولويات الاستراتيجية ودعم النمو على المدى الطويل. تشمل الخطة برنامج تقاعد مبكر طوعي، إغلاق العديد من الوظائف الشاغرة وتقليصات في قوة العمل القائمة على المكاتب، مع توقع إزالة نحو 250 وظيفة في الشركات والمبيعات. تتوقع الشركة تكاليف إعادة الهيكلة من 20-25 مليون دولار، في الغالب لمزايا تقاعد لمرة واحدة، وتسوية نقدية، وتكلفة تعويض الأسهم ومزايا الموظفين، مع تحمل معظم التكاليف في الربع الرابع من السنة المالية 2025 والربع الأول من السنة المالية 2026. وقالت الإدارة إنه سيتم إعادة توجيه الموارد نحو التكنولوجيا والابتكار والسلامة الغذائية ولياقات أشخاص القوى العاملة لتعزيز العلامات التجارية وتحسين الكفاءة.
- $20–$25M one-time restructuring charges announced
- Plan directs resources to technology and innovation
- Focus on food safety and quality investments
- Reduction of approximately 250 corporate and sales positions
- Most charges expected in Q4 FY2025 and Q1 FY2026
- Charges include one-time pension and severance costs
Insights
Hormel announces a 250-role reduction with $20–$25M in one-time charges to reallocate resources toward growth priorities.
The company will reduce approximately 250 corporate and sales positions through voluntary early retirement, role closures, and targeted reductions. It expects restructuring charges of
These moves shift cost base toward identified priorities like technology, innovation, and food safety, while incurring measurable near-term expenses. Key dependencies include the pace of cost realization and the effectiveness of reinvestment in the named areas; outcomes hinge on successful redeployment of savings into those capabilities. Watch the actual charge realization and quarterly operating expense trends over the next two quarters and any follow-up disclosures quantifying reinvestment amounts and anticipated annualized run-rate savings.
To ensure the company remains efficient and well-positioned for long-term success, Hormel Foods has implemented a voluntary early retirement program for a portion of its non-plant workforce, is closing many open roles and will reduce certain positions across its office-based workforce. These actions are expected to result in the reduction of approximately 250 corporate and sales positions.
"We approached every decision with care and respect for our team members," said Jeff Ettinger, interim chief executive officer, Hormel Foods. "Our focus is on providing support and resources to those impacted as they transition from the company."
The restructuring reflects the company's ongoing focus on balancing cost discipline with reinvestment in areas critical to its future.
"Hormel Foods remains focused on growth — and growth requires continued investment," said John Ghingo, president, Hormel Foods. "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."
In connection with this restructuring, the company expects to incur restructuring charges in the range of
"Each person who is leaving has contributed to our organization, our culture and our success. We're grateful for everything they've done," Ettinger said.
About Hormel Foods – Inspired People. Inspired Food.™
Hormel Foods Corporation, based in
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements, which are based on the Company's current assumptions and expectations. These statements are typically accompanied by the words "aim," "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "project," "seek," "target," "will," "would," or similar words or expressions. The principal forward-looking statements in this press release include statements regarding the Company's corporate restructuring plan and related costs, planned investments, and future financial and operational performance.
All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although the Company believes there is a reasonable basis for the forward-looking statements, its actual results could be materially different. The most important factors which could cause the Company's actual results to differ from its forward-looking statements include, but are not limited to, risks related to the deterioration of economic conditions; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; the risk of disruption of operations; the risk that the Company may fail to realize anticipated cost savings or operating profit improvements associated with strategic initiatives, including the Transform and Modernize initiative; risk of the Company's inability to protect information technology (IT) systems against, or effectively respond to, cyber-attacks, security breaches or other IT interruptions; food safety risks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for the Company's products; risks related to the Company's ability to respond to changing consumer preferences; damage to the Company's reputation or brand image; risks of litigation; risks associated with trade policies, export and import controls, and tariffs; and the other risks and uncertainties described in Item 1A – Risk Factors of the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which can be accessed at www.hormelfoods.com in the "Investors" section. Though the Company has attempted to list comprehensively these important cautionary risk factors, the Company cautions that other factors may in the future prove to be important in affecting the Company's business or results of operations. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement.
Contact: Media Relations
media@hormel.com
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SOURCE Hormel Foods Corporation
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