Four of my sources have over 15 years in with the company and they all have said the same thing at different times.

it's called the cost of doing business

The Schwan Food Co. announced plans to lay off over 300 workers across the country, with some of the cuts taking place at its corporate offices in Minnesota.

 

The Marshall-based foods company said that it undertook the move in an effort to reorganize its home delivery division, and cited "challenging economic conditions" as the driving force behind the measure.

 

The company will lay off 30 workers in Marshall, who work in its home service division. Positions cut were in the areas of marketing, finance, operations, strategic planning and development.

 

Around the country, 307 positions were eliminated at various sales and distribution centers; the company also expanded the responsibilities of its general managers.

 

The company said that as part of the restructuring effort, it would create about 123 new positions nationwide, eight of them in Marshall.

 

Employees affected by the cuts were notified Monday. They will have the opportunity to apply for the new positions.

 

The company is also looking to fill 50 manufacturing positions in Marshall.

 

Recently, the Business Journal reported that the company would close a dessert plant in South Carolina, laying off 525 workers.

 

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A friend of mine who owns an Ice Cream joint had to raise prices on all his products due to the increased cost of milk.

My sister is the manager at popeyes chicken and she said the cost of their flour per bag went from 10 bucks a bad up to almost 19 in the last two weeks.

If the company is having problems then the company needs to take the necessary steps to maintain profitability. If that means laying off workers and reducing pay then that's what they need to do. What I don't like is when senior management reduces cost by cutting the average workers pay and then gives themselves a pay raise for managing costs well.

My sister is the manager at popeyes chicken and she said the cost of their flour per bag went from 10 bucks a bad up to almost 19 in the last two weeks.

 

It did.....flour is a mess right now.

^ Let me explain something about "sales" growth. A lot of comanies like Schwan's use dollar figures to explain sales growth. Well, we are in an inflationary market, meaning that the same goods we bought a year ago cost more now. That said, if Schwan's sold (for example) 1,000 cases or product at $50/case, a year ago, with today's inflation, they likely would go for $67-$70 a case now. Meaning, that if you sold the same number of cases your sales would have jumped from $5,000 - $7,000. The real problem is, they likely sold less cases, but their fuel costs soared. A false growth is a very scary thing, my company tracks our sales growth, and our PIECE growth, to track real sales. From working with Schwan's product and such, I give them a pass in this issue.

 

That's a good point. People are blinded by gross numbers and hardly ever look at net gain.

 

Bottom line is that gasoline prices are hiked up on every company, and it will take a bigger increase in sales than this company had to cover the added expenses.

CUT

Schwan's Food who has Tony's , Reb Baron and Freschetta pizza to name a few of their products come off a record in sales for the 2007 year. The award given to many of their employees a pay cut.

 

 

Says a lot about a company.

 

That's exactly why I only buy Digiorno,Tombstone,Cafl.Pizza Kitchen,& Jacks.

If the company is having problems then the company needs to take the necessary steps to maintain profitability. If that means laying off workers and reducing pay then that's what they need to do. What I don't like is when senior management reduces cost by cutting the average workers pay and then gives themselves a pay raise for managing costs well.

Mangers still got their pay raises and their bonus.

More news on this company-OVER 3000 PEOPLE WERE LAID OFF THIS WEEK WORLDWIDE. 350 OF THEM IN HOME SERVICE, OF THAT 350 ONLY 30 LAID OFF AT MARSHALL Minnesota . THE REST WAS FIELD EMPLOYEES.

Could it be the consumer is sending a message to this company? Sells are reported to be down 8% this year.

I believe it has more to do with everything down (the economy) and not people buying from schwanns.

This company has started letting people go in Central,Ohio this week.

Prices keep going up and sales keep going down.

^ Happening all over the country.