Darden Executives Departing; Company Restructuring Plans to Save 20 Million Dollars
ORLANDO, FL - Three senior executives at Darden Restaurants have announced their departure from the company:
- Brad Richmond, CFO, will retire after 32 years with the company, effective at the end of March 2015 or sooner if a successor is found.
- Daisy Ng, Chief Human Resources Officer, will transition out of her role to be replaced by Danielle Kirgan, SVP of Human Resources, Specialty Restaurant Group, and Total Rewards, effective January 5, 2015. Ng will continue to work with the Board of Directors, however.
- Bob McAdam, SVP of Government and Community Affairs, will resign from the company after eight years of service.
This news comes as Darden announced a number of strategic actions to save approximately $20 million per year through a reduction of general and administrative expenses, according to a press release. These actions include a corporate restructuring that will affect nearly 60 employees and cut 25 open positions, the elimination of a layer of field operations management at Olive Garden and Longhorn Steakhouse, and the removal of the company’s aviation department.
“While these changes will significantly improve how we operate, it is always difficult to take actions that have an impact on the dedicated individuals who have made significant contributions to our company,” said Gene Lee, Darden’s Interim CEO. “Departing employees will receive severance and other benefits appropriate to their position and tenure that are consistent with our values. We thank them for their contributions to Darden.”
The company expects savings of approximately $10 million this fiscal year.
Darden suggests these moves will continually increase the focus on restaurants operations and improve the guest experience, ultimately better positioning the company to “win the battle for market share across all of its concepts.”
Lee continued, “The actions announced today are critically important steps in becoming more efficient in how we support the restaurants. This includes limiting the number of distractions that divert our attention from what matters most – continually working to improve the food and service we offer our guests.”
Stay tuned to AndNowUKnow for Darden’s upcoming second quarter earnings call next month.