ConAgra To Cut 1,500 Jobs As Part Of Restructuring That Aims To Save $300 Million

By Ciara LinnaneMarketWatch Pulse

ConAgra Foods Inc. said Thursday it is planning to cut 1,500 jobs and relocate its headquarters to Chicago, as it looks to realize at least $300 million of savings and streamlining in the next three years. The food giant expects to save about $200 million through the job cuts and other savings such as zero-based budgeting, eliminating management layers and outsourcing technology and other back office functions. The company expects to realize another $100 million of benefits from changes to trade spend processes. The job cuts are equal to 30% of the company's office-based workforce, it said in a statement. The company is aiming to build a "focused, higher-margin, more contemporary and higher-performing company," Chief Executive Sean Connolly said in a statement. The company will begin the move to Chicago in the summer of 2016, but will retain a presence in Omaha with about 1,200 employees. Shares were not yet active in premarket trade, but are up 12% in the year so far, while the S&P 500 has lost 6.7%.

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