Sysco To Layoff 1,200 Workers, Raised Earnings Growth Target

Sysco Corp. said Monday it will layoff 1,200 workers, or about 2% of its workforce, over the next 15 months, as part of its plan to boost earnings. The food products distributor expects to record $25 million to $30 million in severance and benefits charges, starting in the fiscal third quarter ending March. The company will also record charges of $70 million in 2016 and $130 million in fiscal 2017 for writeoffs and accelerated depreciation and technology conversion costs. As a result of its productivity plan, Sysco raised its operating income growth target to at least $500 million from $400 million by the end of fiscal 2018. The stock, which was still inactive in premarket trade, has climbed 11% over the past year, while the S&P 500 has slipped 7.4%.