Tags: Keurig Green Mountain | sales | revenue | job cuts

Keurig to Cut 5 Percent of Workforce as Revenue Misses Targets

Wednesday, 05 Aug 2015 05:38 PM

Keurig Green Mountain Inc. said on Wednesday that it expects to reduce its workforce by about 5.0 percent as the company grapples with declining sales of its brewers and single-serve coffee pods.

The reductions are part of a plan to cut $300 million in costs over the next three years with roughly $100 million in savings in fiscal 2016, Keurig said in a statement.

Keurig's net income fell to $113.6 million, or 73 cents a share, in the third quarter ended June 27 from $155.2 million, or 94 cents a share a year earlier. When adjusted for one off items, the company earned 80 cents a share.

Revenue fell 5.2 percent to $969.5 million.

Analysts were expecting adjusted earnings of 79 cents a share and revenue of $1.04 billion.

"While we are not pleased with our revenue growth, we delivered earnings at the high end of our previous guidance," Keurig Chief Executive Brian Kelley said in a statement. "We are taking decisive actions to adapt and compete more effectively in today's rapidly-evolving, dynamic marketplace."

The company also authorized the additional repurchase of up to $1 billion in shares over the next two years.

© 2017 Thomson/Reuters. All rights reserved.

 
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Keurig Green Mountain Inc said on Wednesday that it expects to reduce its workforce by about 5.0 percent as the company grapples with declining sales of its brewers and single-serve coffee pods.
Keurig Green Mountain, sales, revenue, job cuts
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2015-38-05
Wednesday, 05 Aug 2015 05:38 PM
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