Campbell’s Co. announced Thursday that it has cut 13% of its salaried workforce and closed two snack plants as part of a sweeping turnaround effort, with CEO Mick Beekhuizen bluntly telling investors that recent performance has been unacceptable. The company, which employed approximately 13,700 full-time and part-time workers as of August 2025, said the restructuring aims to generate about $500 million in cost savings by fiscal 2030.
“Make no mistake, our results remain unacceptable,” Beekhuizen said in a statement. “But instead of waiting for the environment to improve around us, we are addressing reality head-on.”
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Sales decline and consumer pressure drive restructuring
The soup and snack maker has been grappling with a difficult consumer environment, particularly among lower-income households that have increasingly traded down to cheaper private-label and value brands. Despite that resistance, Campbell’s has implemented average price increases of 4% to 5% across roughly 60% of its portfolio to protect margins against rising costs for raw materials, logistics, and marketing investments behind soup and sauce launches and holiday merchandising programs.
Those price hikes have taken a toll on volumes. In the fourth quarter, net sales fell 8% to $2.14 billion, slightly missing the $2.15 billion analysts had expected, according to LSEG data. Adjusted earnings per share of 39 cents matched consensus estimates.
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Volume declines were most pronounced in the snacks segment, where volumes fell 6% while prices rose just 1%. The meals and beverages segment fared better, with volumes up 3% and prices flat.
Cost savings and a lowered outlook
The restructuring is part of a broader effort to improve operational efficiency and restore profitability. CFO Todd Cunfer told analysts that the benefits from the price increases are expected to begin flowing through in the second quarter, even as sales take a hit in the near term.
Campbell’s now expects fiscal 2027 net sales to decline 2% to 4%, compared with analysts’ forecast of a 0.8% drop. The company forecast adjusted earnings per share of $1.65 to $1.80, below the $1.86 analysts had penciled in.
“Our priorities are clear: return Campbell’s to a sustainable, long-term value creation model, reduce financial risk and maintain our investment-grade credit rating,” Beekhuizen added.
Industry-wide cost-cutting trend
Campbell’s joins a growing list of consumer goods companies trimming costs as they manage shifting consumer preferences and persistent inflationary pressures. The company’s move follows similar restructuring announcements across the sector, including recent job cuts at other major brands.
Shares of Campbell’s fell 3.37% to $21.38 in early trading Thursday following the announcement, reflecting investor concerns about the company’s near-term growth prospects.
Campbell’s stock has struggled over the past year as the company has wrestled with slowing demand for its iconic soups and snacks. The company’s decision to close two snack plants underscores the severity of the volume declines in that division, which includes brands like Goldfish crackers and Pepperidge Farm cookies.
The company’s turnaround plan will be closely watched by investors and industry analysts over the coming quarters as management works to stabilize sales while cutting costs. The success of the strategy will likely hinge on whether Campbell’s can regain momentum with budget-conscious consumers without sacrificing the margin improvements it has achieved through price increases.
Reuters contributed to this report.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Market conditions are volatile and subject to change. Readers should conduct their own research before making investment decisions.
