Secrets of the Job Hunt


Monday, October 08, 2007

Dallas Jobs & Dean Foods

Imagine going to the store and reaching for a favorite brand of milk, only to note an increase in the price. At this point, many money conscious individuals would simply direct their hand lower to where most grocery stores keep the less expensive brands. Very few even stop to think about why the price has risen or how their shopping decisions effect the economy.

They are only aware of the fact that they certainly do not plan on spending 20 cents more for a gallon of milk. This is essentially the reason the country's largest producer of dairy products is now planning to lay off 600 to 700 individuals, a situation which stands to possibly effect Dallas jobs.

Dallas-based Dean Foods Co. has lowered their this quarter profit expectations due to the rising cost of production for milk by-products. The demand for such products has been increasing with the population growth so rapidly that dairy farmers have to unable to keep up, causing the rise in prices. This, in turn, has caused many to switch from brand name dairy products to generic alternatives.

To enable to company to continue to make a profit, Dean has decided that cutting anywhere from 600 to 700 positions, or 2 percent of their workforce, is the most viable option. This may cause the loss of some jobs in Dallas, although the official report on positions to be lost in which areas has not yet been announced.

Dean plans to begin their decreasing the number of employees by offering the option of “voluntary departures” to those interested. If this does not successfully reduce the staff by the desire 2 percent, then the company will have to result to forced job cuts. These layoffs will take place before the end of the month, which does not give those effected much time to search for other employment.

Wachovia financial analyst, Jonathan Feeney, told the Washington Post that the current situation is not unusual for the dairy market, as “the third quarter has historically been the toughest times of severe dairy price spikes.” He goes on to say that “things should get better from here.” It is expected that milk production should soon be able to catch up demand, which may cause the need for Dean to re-hire many individuals in the new year.

1 comment:

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