Dive Brief:
- TreeHouse Foods announced a plan to centralize and reorganize its corporate support functions, resulting in the elimination of 150 jobs. The company’s chief commercial officer, Scott Tassani, will depart on May 30, with his responsibilities redistributed among other senior leaders.
- These layoffs are part of TreeHouse’s efforts to drive cost savings, improve profitability, and enhance cash flow.
- TreeHouse has been actively restructuring its business through acquisitions and divestitures to boost growth and margins. However, the company has faced challenges, including two major recalls involving broth, waffles, and pancakes since 2023.
Dive Insight:
TreeHouse Foods, formed through multiple mergers, has undergone significant transformation under CEO Steve Oakland’s leadership. By divesting a portion of its meal prep business for nearly $1 billion in 2022, TreeHouse has streamlined its operations and focused on high-growth segments such as snacking.
The company has also expanded its portfolio through acquisitions of condiment brands, a pretzel manufacturer, a coffee production facility, and a tea business. Despite these efforts, TreeHouse has faced challenges due to weak consumer spending, industry trends, and financial setbacks from product recalls.
TreeHouse’s stock price has declined significantly in recent years, prompting the company to explore further improvements in its operations and cost structures to enhance competitiveness and profitability.
TreeHouse’s corporate restructuring aligns with broader industry trends, as companies like Post Holdings have also announced layoffs and facility closures. Additionally, TreeHouse is monitoring the impact of tariffs on its business, with a minor percentage of its sales coming from international markets.
TreeHouse Foods is scheduled to release its first-quarter results on May 6.