Tyson to Cut $110MM in Costs
Tyson’s new CEO Richard Bond last week announced plans to cut $110 million in spending as he brings Tyson back to a “commodity mindset.”
Bond has a three-part plan to jumpstart profitability: revamp its approach to the commodity business that accounts for more than half its revenue; better manage costs; and make the company more agile.
Bond just took charge of Tyson earlier this month; he had been president-COO, and replaced John Tyson, who remains chairman (Xtra, May 23, 2006). Bond’s background is in commodity meats; he had been CEO of beef processor IBP, Inc., which Tyson bought in 2001.
The $110 million in cuts for fiscal 2007 will come across the board, from staffing, programs, reports, information requests, travel and entertainment expenses and consulting fees. Specific cuts will be decided in about a month; Tyson’s fiscal year begins Oct. 1.
It’s unclear whether Springdale, AR-based Tyson will cut the budget for its “Powered by Tyson” marketing campaign handled by Arnold Worldwide, Boston. Tyson’s sponsorship of the U.S. Olympics Committee becomes the platform for that campaign later this year.
