Tasty Baking announces 32 layoffs at HQ

Posted: August 06, 2011

Tasty Baking Co. delivered bad news to employees Friday, announcing the elimination of 32 positions at its former headquarters at the Philadelphia Navy Yard.

The job cuts had been expected after the company's acquisition by Flowers Foods Inc. in May for about $165 million, most of which went to repay debt taken on to pay for the move to a new, $78 million bakery last year.

"As is often the case when two publicly traded companies merge, we found overlap and redundancy in office functions," said Paul Ridder, president of the Philadelphia operation and former Tasty senior vice president and chief financial officer.

Tasty did not say how many office jobs would remain in Philadelphia, but it said overall employment at its bakeries in the Navy Yard and in Chester County, plus sales staff, would total almost 700. The total was 740 in April.

Tasty's publicly subsidized move from the Nicetown site it had occupied since 1922 to a state-of-the-art bakery at the Navy Yard was supposed to save the company enough money - largely from job cuts - to invest in new products and expanded distribution.

A third of the bakery jobs disappeared, but the savings fell short, driving the company into Flowers' arms.

Last month, Flowers, of Thomasville, Ga., started selling Tastykakes in Georgia, Florida, and Alabama, a first test of brand strength under new owners.


Contact staff writer Harold Brubaker at 215-854-4651 or hbrubaker@phillynews.com.

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