USA – TreeHouse Foods, Inc., a multinational food processing company, has announced that it plans to close its office in Omaha, Nebraska by January 31, 2019.
According to the company, this decision to close the Omaha office is part of its previously announced TreeHouse 2020 multi-year restructuring program to reduce its cost structure through simplification and to align the operations with the current and future needs of the business.
The Omaha office closure will affect approximately 200 employees.
The related work content will be consolidated into the Company’s existing facilities in Green Bay, Wisc. and Oak Brook, Ill.
“The decision to close the Omaha office was a difficult one, and we are committed to assisting employees through this difficult transition,” said Steve Oakland, CEO and President of TreeHouse Foods.
“As we streamline our enterprise resource planning systems and near the completion of SAP order-to-cash conversions, it makes a great deal of strategic and financial sense to leverage our shared services capabilities across the Company.”
TreeHouse is committed to a smooth transition and will provide affected employees with separation pay and outplacement assistance.
Costs associated with the office closure are expected to be incurred primarily over the next three quarters, and will total approximately US$6 million (or US$0.08 per share), most of which is anticipated to be in cash.
The company recently announced its plan to also shut down its facility in Visalia, California by the end of the first quarter of 2019.
The plant, which primarily produces pretzels and cereal snack mixes for the Baked Goods segment, will have its pretzel facility moved to other TreeHouse manufacturing facilities prior to the plant closure.