One of Manatee’s biggest employers cuts a third of workers as COVID-19 hits food supply
Food distribution company Sysco has cut its national workforce by one-third due to the devastating effects of the coronavirus pandemic.
Sysco’s West Coast Florida operation, 3000 69th St. E., Palmetto is one of Manatee County’s larger employers. The Palmetto operation opened in 1996.
Prior to the pandemic, Sysco West Coast Florida employed 468, making it the eighth largest business employer in Manatee County, according to the Bradenton Area Economic Development Corp.
The Houston-based Sysco announced its third-quarter fiscal results Tuesday and said that the extent of the COVID-19 crisis is more substantial than any other throughout the company’s 50-year history.
“Immediately after the onset of the virus, we took significant actions to reduce expenses. We expect cost reduction realizations to take effect beginning in the fourth quarter. In the fourth quarter of fiscal 2020 alone, we have removed more than $500 million of expenses from the business, which includes the difficult decision to reduce our staffing levels by approximately 33 percent through a combination of temporary workforce furloughs and permanent reductions in force,” Sysco said in a press release.
“In addition, we have substantially reduced miles driven by re-routing our transportation fleet and have implemented productivity improvements in our operating companies,” the company said.
In the third quarter, Sysco said it experienced a dramatic decline in volume, sales, and gross profit across all of the business segments as a result of the pandemic.
From the low point at the end of March, trends in April have shown sequential weekly improvement that reflects further momentum and upward trajectory, the company said.
“We expect additional improvement throughout the month of May as certain states allow restaurants to re-open their dining areas,” the company said.
Restaurant dining rooms began the slow and careful reopening in Bradenton and the rest of Florida on Monday after Gov. Ron DeSantis partially lifted his stay-at-home order.
The disruption in the food supply chain has hit Manatee County farmers particularly hard, making it impossible to get their products to traditional markets.
“In these unprecedented times, Sysco has a foundation which allows us to operate from a position of financial strength and flexibility. Soon after the onset of the crisis, Sysco took swift and decisive action to adjust to the new operating environment. Our strong balance sheet provides the stability to navigate the current environment, and we remain confident in our ability to achieve continued success and growth over the long term,” said Kevin Hourican, Sysco’s president and chief executive officer.
“I am immensely proud of the way Sysco associates have served our customers and made the company their most valued and trusted partner during this difficult period. Sysco has a long track record of supporting customers and communities during crises, and through this experience, we have seen first-hand the essential role our company plays in the food supply chain,” Hourican said in the press release.
Sysco’s sales for the third quarter were $9.6 billion, a decrease of 5.1 percent compared to the same period last year.
For more about Sysco West Coast Florida, visit https://sysco.com/Contact/Contact/Our-Locations/West-Coast-Florida.
