Tuesday, December 02, 2008

Jobs or no jobs?

Some conflicting reports on what Pilgrim's Pride filing for bankruptcy means in terms of an impact on jobs in the area.

This story in the Athens Banner-Herald says that layoffs are possible and that the company will emerge from its reorganization as a smaller one (which makes perfect sense seeing how it's hoping to save money in the long-run).

However, the Atlanta Business Chronicle has a quote from a spokesman saying layoffs aren't likely ...

Ray Atkinson, a spokesman for the company, said the filing will not have a direct impact on jobs. In fact, he said, the company believes the financing supplied through the reorganization plan would allow Pilgrim’s to reinvest and restructure the company.

Pilgrim’s reiterated in a press release that the company has requested permission to continue paying payroll, wages, benefits and other operational expenses. The corporation added that suppliers should expect to be paid for post-petition purchases of goods and services.

It's a tough situation all the way around, particularly after the company apparently bit off more than it could chew with its acquisition of Gold Kist, and the tough economic times must have tipped them over the edge.

Pilgrim's Pride is on record saying it won't impact jobs, so let's hope that's the case.


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