TOPEKA, KAN. — J.M. Smucker will be laying off employees at the Hostess Brands offices in Kansas, according to a notice filed July 29 under the Worker Adjustment and Retraining Notification Act (WARN).
The filing with KansasWorks said 79 employees at 7905 Quivira Road in Lenexa, Kan., would be affected. The Lenexa location in metropolitan Kansas City was corporate headquarters for Hostess before its November 2023 acquisition by Smucker.
Under the WARN Act, employers are required to provide written notice at least 60 calendar days before mass layoffs.
Responding to an inquiry from Milling & Baking News, the company said:
“Following a thorough review of our operating model and business needs as we coordinate the integration of Hostess Brands, we have made updates to our organizational structure. With these decisions, some employees currently supporting the business will be exiting the company. These employees will be fully supported as they transition, per our established outplacement processes. Please know that any decision that impacts our employees is made only after careful consideration. We will manage this transition in a thoughtful manner and in alignment with our commitment to being respectful of the unique needs of every employee.”
Announcing last September Smucker’s plans to acquire Hostess for $5.6 billion, Tucker H. Marshall, Smucker chief financial officer, projected annual “anticipated run rate synergies of $100 million.” He said the synergies would provide for “greater margin enhancement” and said half would be realized in fiscal 2025 (year began May 1) with the full annualized amount to be recognized in fiscal 2026.
Expectations that “approximately $100 million” in cost synergies would be achieved by the end of fiscal 2026were affirmed in Juneby Mark T. Smucker, chairman, president and chief executive officer.