Schwan Food Co. Lays Off 60 in MN to Cut Costs

The affected employees work in the company's Marshall and Bloomington offices.

Marshall-based The Schwan Food Company announced Thursday that it has laid off approximately 60 employees in Minnesota as part of a cost-reduction initiative.

Employees affected by the reduction work at the company's Marshall and Bloomington offices and represent approximately 2 percent of the 2,500 Minnesota-based employees.

Affected employees-who were notified Thursday-will continue to be on the payroll and receive benefits through the holidays, the company said. They will also receive severance packages and outplacement services.

“Eliminating positions is always difficult,” Schwan CEO Greg Flack said in a statement. “This decision was made only after reducing other expenses and carefully considering what is best for the company and employees as a whole.”

Flack added that the cuts will help the company reduce its operating costs, although he didn't say by how much.

Both the Marshall and Bloomington locations will be affected equally on a percentage basis, Chuck Blomberg, communications manager for Schwan, told The Independent of Marshall. The company did not announce exact numbers by location or specify which divisions have been affected by the layoffs.

According to The Independent of Marshall, this latest round of layoffs is the company's largest since it cut 52 jobs in January 2009. The company had reportedly laid off 67 employees four months prior to that.

The Schwan Company nationally employs approximately 16,000 people. It is among Minnesota's five largest private companies based on revenue, which totaled an estimated $3.67 billion in 2010. It manufactures and markets fine frozen foods through home delivery, retail grocery, and food-service channels.