10 May 2010 - Dean Foods has announced that it will cut 350-400 jobs in its Fresh Dairy Direct-Morningstar division in addition to the approximately 150 positions that have already been eliminated so far in 2010.
The company said that the new job cuts are necessary to accelerate its cost reduction and capability building efforts. Dean Foods plans also expects to reduce costs to every area of its business including business segments, supply chain and corporate functions.
The action will be rolled out over the balance of the year and is expected to result in approximately USD 25 million in annualized savings.
"The cost reduction strategy we have been pursuing is our single most important area of focus", said Dean Foods' CEO Gregg Engles.
"We have discussed goals of $90 million in cost savings in 2010 and $300 million over three to five years. It’s now clear that we have to be much more aggressive in both the timing and magnitude of our efforts. Going forward, these efforts will include an increase in the scale of the initiatives we currently have underway, as well as an increase in the scope of those efforts across the business. We are developing plans to accelerate productivity across our entire cost structure, including production, distribution, sales, administration and corporate expenditures", added Engles.
