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

Keurig to Cut 5 Percent of Workforce as Revenue Misses Targets

Wednesday, 05 August 2015 05:38 PM EDT

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.

© 2026 Thomson/Reuters. All rights reserved.


Companies
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
193
2015-38-05
Wednesday, 05 August 2015 05:38 PM
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