Chiquita Restructures, Cuts 160 Management Positions

Militia-funding banana company Chiquita has announced a big restructuring plan that will eliminate 160 management jobs, including 21% of the top three tiers of management, for a savings of $60-80 million dollars in 2008. The company says it will use the savings to pay down debt. It doesn’t mention, however, that last month it was fined $25 million for financially supporting both left- and right-wing paramilitary groups in Colombia from 1997 to 2004.

Coincidentally, the company said it will “take a one-time charge of $25 million in the fourth quarter of 2007, related to severance costs and certain asset write-downs.”

“Chiquita Brands to restructure and cut jobs” [Reuters]

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  1. louisb3 says:

    Heehee.

  2. j03m0mma says:

    Nice to see that some large corporation has realized that if you want to save real money you trim at the top fat management jobs 1st. 160jobs saving $60-$80million, and they are the people that actually made the decisions to pay off the said militia groups above. Good for Chiquita.

  3. Jesse in Japan says:

    Well, there’s always the unemployment line.

  4. stinerman says:

    $25 million for funding paramilitaries? Call me old fashioned, but I think that’s a bit lenient. I’d have revoked their corporate charter and liquidated their assets, but that’s just me.

  5. headon says:

    at least their bananas have appeal. Get it, a peel. I crack myself up.

  6. ColoradoShark says:

    160 jobs saving $60 million averages out to $375,000 per job. Granted, that isn’t all salary. That is still at least five decent paying low level worker jobs.

  7. Hinomura says:

    @Stinerman: you wouldn’t be saying that if you understood the context of the funding. It’s not really funding per se, more like extortion. the paramilitary groups would come to you and say we’ll protect you from the other side for $X. if you don’t then something bad will happen. why do you think they “support” both left and right wing sides? because both sides extorted the shit out of chiquita. and btw, the only reason why this is public knowledge is because Chiquita’s own executives felt guilty about giving money to terrorists and of their own volition fessed up to the Feds. good job on the gov’t for slapping them in the face by using it against them and fining them. sounds just like the typical hypocritical bullshit to come out of the Bush administration

  8. @headon: I lol’d

  9. Obtusegoose says:

    Financially supporting both left- and right-wing paramilitary groups in Colombia from 1997 to 2004 is… crazy. Orange you glad I didn’t say bananas?
    ;o)

  10. edrebber says:

    @Hinomura: So buying bannanas = funding terrorists? Probably had to fire management to save their life.

  11. Hinomura says:

    @edrebber: pretty much. I mean it’s the cost of doing business in a war torn country. the same goes for any business that goes on in china. in america we call it corruption. in china they call it guanxi. i.e. “political sway”