Lamb Weston to cut 4% of workforce as part of cost savings plan

Lamb Weston (LW) announced in its earnings release that its cost savings plan includes headcount reductions of approximately 4% of the company’s global workforce, which also reflects the elimination of certain unfilled positions. The company’s cost savings program is expected to deliver at least $250M of annualized run rate savings by the end of fiscal year 2028. Lamb Weston expects to generate approximately $120M of working capital improvements compared to current levels by the end of fiscal 2027. In connection with these cost savings, the company expects to recognize total pre-tax charges of $70M to $100M, most of which will be paid in fiscal 2026. It said, “Lamb Weston is taking aggressive and decisive actions to improve its focus and improve shareholder returns. The Lamb Weston Board is operating with a heightened sense of urgency to return Lamb Weston to profitable growth, and we believe that the actions announced today in our Focus to Win plan are a strong first step. We look forward to updating our customers and the investor community as we build on this to maintain Lamb Weston’s place as a customer-centric innovation leader and unlock value for shareholders.” Lamb Weston shares are up 17%, or $8.42, to $57.55 in midday trading.