Campbell’s cuts 13% of salaried staff and shuts two snack plants
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Campbell's is cutting 13% of salaried staff and closing two snack plants after weak demand and margin pressure, while guiding for FY2027 sales declines and adjusted EPS below consensus. The restructuring highlights ongoing consumer downtrading and limited pricing power across packaged foods despite recent price hikes. The news is primarily idiosyncratic to the issuer with modest read-through to broader defensives and staples sentiment.
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Campbell’s said it is cutting 13% of its salaried workforce and closing two snack plants as it seeks to improve operations and return to profitability. The company’s snacks volumes fell 6%, and it has implemented average price increases of 4% to 5% across about 60% of its portfolio, with benefits expected to begin flowing through in the second quarter. Campbell’s plans to generate about $500 million in cost savings by fiscal 2030. It forecast fiscal 2027 net sales to decline 2% to 4% and adjusted earnings per share of $1.65 to $1.80, below analysts’ estimates of $1.86.
