CHARLOTTE, NC -- Lance Inc. said it has reduced its workforce by 2% as part of a series of cost-cutting measures. Officials said the cuts were necessary to restore the snack company’s profit margins and align its operating costs with its revenue, which has been below its expectations.
The company expects to record a pretax charge for severance and related expenses of approximately $3 million in the second quarter of fiscal 2010 as a result of the layoffs. Annualized benefits from the cost reductions are expected to total approximately $6 million.
Lance manufactures and markets crackers, cookies, potato chips, nuts and candy under the Lance, Cape Cod, Tom's, Archway and Stella D'oro brands, along with a number of private-label and third-party brands. It has manufacturing facilities in North Carolina, Iowa, Georgia, Massachusetts, Texas, Florida, Ohio and Ontario, Canada.