Sysco to cut 1,200 jobs

Photo: Houston Chronicle Sysco Houston Inc. food products supplier at 10710 Greens Crossing...

Houston's Sysco Corp. said Monday it will cut 1,200 jobs, as it seeks to boost productivity and increase profits.

The food distribution company revealed the plan to cut its workforce by about 2 percent as it gave what it described as additional details of its current three-year operating plan. The company also said it will revamp its technology strategy to focus on "improving customer experience."

Of the total job cuts, 480 of the positions -- including 160 are now vacant -- are in Houston. The company currently has about 3,300 employees in the Houston area and about 52,000 company-wide.

"We have also reached a very difficult decision to reduce the size of our work force," Sysco CEO Bill DeLaney said in a statement. "We take seriously any decision that impacts our associates, but this is an essential step toward becoming a more efficient organization. This action will position us to compete more effectively in the markets we serve, while continuing to invest in our business, grow our dividend, make strategic acquisitions and opportunistically repurchase shares."

The job cuts will happen over the next 15 months and focus on "administrative, non-customer-facing roles." The company said local marketing associates and delivery and warehouse associates won't be cut.

Sysco expects to take severance and related charges of $25 million to $30 million over the next 15 months as well as charges of about $70 million in fiscal 2016 and approximately $130 million in fiscal 2017 related to write-offs and other costs resulting from the changes in technology strategy.

Last week, less than a year after federal regulators rejected its attempted purchase of its largest U.S. rival, Sysco said it would buy the biggest food -distribution company in the United Kingdom.

DeLaney said the $850 million acquisition of London-based Brakes Group would provide a good "geographic platform" to grow internationally.

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Source: Fortune

Fortune magazine has released the 2015 edition of their popular "Fortune 500" rankings. Quite a few Texas businesses made the list. Keep clicking to see the top 20 heavy hitters in our state.



Source: Fortune Fortune magazine has released the 2015 edition of their popular "Fortune 500" rankings. Quite a few Texas businesses made the list. Photo: Courtesy Of Phillips 66 Photo: Courtesy Of Phillips 66 Image 1 of / 32 Caption Close Sysco to cut 1,200 jobs 1 / 32 Back to Gallery

Mike D. Smith contributed to this report.