Grupo Bimbo’s Strategic Program Leads to 600 Jobs Loss

Grupo Bimbo has announced that its subsidiary Bimbo Bakeries USA, Inc. (“BBU”) has successfully completed its voluntary separation program (VSP), undertaken to accelerate the company’s strategic objective of lean organizational design.

The VSP is meant to “better positions BBU for profitable and sustainable growth by enhancing operational and administrative efficiencies,” according to the company’s announcement. On the other hand, the measures will lead to 600 positions disposal.

“This effort represents an important part of our transformation to drive growth, improve productivity and enhance profitability. The completion of this program will help increase cash flow and improve profitability, as it has a payback of less than two years. Furthermore, a leaner, stronger and less complex organizational structure allows us to respond to new opportunities with greater agility. We extend our gratitude to all those who have been part of the BBU family and continue to progress in our purpose of building a sustainable, highly productive and deeply humane company” said Fred Penny, BBU President.

This program, along with other initiatives, resulted in a net headcount reduction of around 600 positions at BBU. As a result, Grupo Bimbo will take a non-cash charge of approximately USD100m in the second quarter. This one-time charge mainly reflects associate severance and benefits-related costs that will immediately benefit the company starting in the third quarter and in the long term.

In 2017, Bimbo’s businesses in North America generated net sales of USD137.66bn, up from USD135.22bn a year earlier.