Hormel Foods is eliminating 250 corporate and sales positions as part of a company-wide restructuring. The Minnesota-based manufacturer, known for brands including Spam and Planters, said the decision follows a review of its office-based workforce and the closure of many unfilled roles. A voluntary early retirement programme has also been introduced for non-plant employees.
The company said the restructuring aligns resources with strategic priorities and supports investment in technology, innovation, and food safety. Hormel expects to record restructuring costs of $20 million to $25 million, including pension benefits, severance payments, and stock compensation.
The job cuts come amid financial strain across the packaged food sector, as higher costs, supply chain disruptions, and weaker demand pressure margins. Hormel recently reported challenges linked to inflation and production setbacks, including avian flu and a plant fire in Arkansas. The company also saw leadership changes, with the departure of its CFO and the return of former CEO Jeff Ettinger on an interim basis.
Major food manufacturers have followed similar paths in 2025. Nestlé, General Mills, and Molson Coors have each announced workforce reductions as they adjust operations to slower sales growth and tighter cost controls.