Hormel Foods parts ways with CFO as inflation, restructuring pressure mount

USA – Hormel Foods Corporation has announced the departure of its Chief Financial Officer, Jacinth Smiley, as the company braces for ongoing cost pressures and corporate restructuring.

The Minnesota-based food manufacturer said Smiley, who has held the CFO role since November 2021, stepped down to pursue other opportunities.

Paul Kuehneman, Hormel’s vice president and controller, has been appointed interim CFO while the company searches for a permanent replacement.

According to filings with the U.S. Securities and Exchange Commission, Smiley will remain an employee until November 30 as Hormel finalizes a separation agreement and evaluates both internal and external candidates for the position.

Kuehneman, 54, joined Hormel in 2009 as director of internal audit and later served as CFO for its Jennie-O Turkey subsidiary before becoming controller in February 2022.

Interim CEO Jeff Ettinger described Kuehneman as an experienced leader who understands the company’s operations and is capable of maintaining financial stability during the transition.

The CFO change follows Hormel’s recent leadership shuffle that saw Ettinger, the company’s former chief executive, return to the helm in July for a 15-month interim term.

Hormel said it continues to face persistent inflation in key commodities, which has exceeded expectations and is expected to weigh on its fourth-quarter results.

The company projected net sales at the upper end of its earlier guidance of between US$3.15 billion and US$3.25 billion but anticipates adjusted earnings per share to fall about US$0.08 to US$0.09 short of forecasts.

Ettinger said in August that Hormel was implementing targeted price adjustments to manage higher input costs, adding that profit recovery would likely extend into the new fiscal year.

Restructuring and Workforce Reductions

In a related announcement, Hormel revealed a corporate restructuring effort intended to realign its resources with long-term priorities and improve efficiency.

The company confirmed it would reduce roughly 250 corporate and sales positions, close open roles, and offer voluntary early retirement to some non-plant employees.

Ettinger said the decisions were made carefully and that affected workers would receive support during the transition.

Hormel expects to record between US$20 million and US$25 million in restructuring costs, primarily tied to pension benefits, severance, and other employee-related expenses.

The charges will mostly be reflected in the fourth quarter of fiscal 2025 and the first quarter of 2026.

President John Ghingo said Hormel’s focus remains on investing in technology, innovation, food safety, and quality to maintain competitiveness despite short-term challenges.

The restructuring and leadership changes come as Hormel also manages external challenges, including avian influenza in poultry operations and a recent recall of nearly 5 million pounds of chicken products due to possible metal contamination.

The company said it is working on productivity initiatives and strategic pricing to offset these disruptions and stabilize its performance in the months ahead.

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