updated: 2/13/2013 12:48:56 PM
Wisconsin-based Sensient Technologies Corp. (NYSE: NXT) says a restructuring plan that calls for relocating an Indianapolis-based division to Chicago will also include permanent layoffs. In a notice to the state, the color, fragrance and flavoring manufacturer says it is not closing all Indianapolis operations, but is planning to part with 125 employees.
Sensient says it is offering to relocate some displaced employees. It expects the layoffs to begin in May and wrap up in September.
You can read the notice to the state by clicking here.
Previously Posted on February 11, 2013
From Sensient Technologies Corp. Earnings Report
The Company is initiating a broad strategic and restructuring plan in the first quarter of 2013. One component of the plan will focus on relocating the Flavors & Fragrances Group headquarters, technical groups, and North American management to Chicago. The relocation of the Flavors & Fragrances Group headquarters will give the Company better access to its customers, improve its access to food industry talent, improve access to worldwide air service and allow it to showcase its broad product portfolio in a state-of-the-art facility. The Company expects to incur personnel and moving related costs between $12 million and $14 million over the next 12 to 18 months as a result of this relocation. This plan does not anticipate the relocation of the Indianapolis production site.
The second component of the plan will generate operating efficiencies throughout the Company. The plan will reduce headcount and consolidate several facilities throughout Europe and North America. The Company expects to reduce its global headcount by more than 200 employees, and consolidate several manufacturing sites during the next twelve months. These changes will not impact the Company's sales coverage, and will result in a more efficient utilization of our human and capital resources. We expect to incur approximately $10 million in one-time personnel related costs and $8 million of one-time non-cash costs related to the write-down of assets and other costs during the next twelve months. The Company expects to reduce its annual operating costs by about $10 million as a result of these changes.
Sources: Sensient Technologies Corp., Indiana Department of Workforce Development