Rymer Foods Inc., a financially troubled producer of frozen, preseasoned and portion-controlled meat entrees, said it’s begun a comprehensive reorganization that includes the resignation of several top executives plus a 20 percent cut in its work force.
A company employee said 60 of the Chicago-based company’s staffers were laid off last Friday, and others will be fired later.
Effective immediately are the resignations of president and chief operating officer Jeffrey Rymer; senior vice president and chief financial officer Ludwig A. Strech; and vice president of operations John Blyther.
The resignation of chairman and chief executive John Patten, effective Dec. 27, was announced last Friday.
As a result of the dismissals, the company said it expects to save about $3.1 million in pay in the coming fiscal year.
Rymer projected it will save another $1 million by reducing other operating costs and long-term debt with cash flow from operations and through inventory reductions.
In September, Rymer reported a $3.3 million loss for the nine months ended July 29. Included in those results was a gain of $4.5 million on the sale of its chicken-processing assets.
