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BUSINESS A25
Friday 2 October 2015
United’s new CEO acknowledges airline’s failures
S. MAYEROWITZ journey hasn’t always been ings said Smisek was ousted In his letter, which ran in answers in advance of the
AP Airlines Writer smooth.” Since the merger, following an internal inves- national newspapers, Mu- site’s launch that focus on
NEW YORK (AP) — Five United has been plagued tigation into the airline’s noz didn’t offer any hints delayed luggage delivery,
years after United Airlines with chronic delays, com- dealing with the public as to how he will actually aging airplanes that lack
and Continental merged, puter outages and dissat- agency that operates its fix United’s many problems Wi-Fi or working TVs and
the company’s new CEO isfied workers, who have a hub airport in Newark, New except that he will listen to the poor quality of first-class
declared in a public letter reputation for taking out Jersey. fliers and employees. meals. “Let’s be honest, the
that the combined com- their frustrations on fliers. That agency, the Port Au- “We are committed to implementation of the Unit-
pany has failed to live up The problems overshad- thority of New York and re-earning your trust,” he ed and Continental merger
to the expectations of both owed the tenure of former New Jersey, is part of a wrote. has been rocky for custom-
fliers and United’s employ- CEO Jeff Smisek, who took federal investigation into The company set up a web- ers and employees,” Munoz
ees. over the combined airline abuse of power. Munoz, site, UnitedAirtime.com, for says on a video greeting
Just three weeks into the when the merger closed on a railroad executive and people to ask questions on the site. “While it’s been
job, CEO Oscar Munoz ac- Oct. 1, 2009. head of United’s audit and provide feedback to improving recently, we
knowledged in full-page On Sept. 8, Chicago-based committee, was named the airline. The airline post- still haven’t lived up to our
newspaper ads that “the United Continental Hold- president and CEO. ed a few questions and promise or our potential.”q
ConAgra cuts 1,500 jobs; moving HQ from Omaha to Chicago
JOSH FUNK Chef Boyardee, Slim Jim
and Hebrew National hot
AP Business Writer dogs, said the job cuts ex-
clude plant positions and
OMAHA, Neb. (AP) — do not include any impact
from the planned sale of its
ConAgra will cut about private label operations.
It anticipates about $345
1,500 jobs, or approximate- million in one-time charges
over the next two to three
ly 30 percent of its global, years related to the re-
structuring.
office-based workforce, “It is critical that we run as
lean and as efficient and
and move its headquarters as effective as possible,”
ConAgra spokesman Jon
to Chicago from Omaha, Harris said.
The jobs being eliminated
Nebraska, the company are primarily redundant
positions or jobs that will be
said Thursday. outsourced, ConAgra said
Thursday.
About 700 workers will be The changes should create
about $200 million in cost
in Chicago starting next savings, with more than
half of that realized by the
summer, including the end of fiscal 2017, accord-
ing to ConAgra. The bal-
company’s senior leader- ance should be achieved
in the following year. q
ship as well as some opera-
tions for its consumer foods
segment that are situated
in Omaha and Naperville,
Illinois. The company will
maintain a significant pres-
ence in Omaha with about Flags fly over ConAgra Foods world headquarters in Omaha, Neb. ConAgra Foods Inc., said Thurs-
day, Oct. 1, 2015, it is getting rid of about 1,500 jobs, or approximately 30 percent of its global
1,200 employees, ConAgra workforce, as part of a restructuring plan aimed at lowering costs and improving its performance.
The packaged foods maker is also moving its headquarters from Omaha, Neb., to Chicago.
said. Those workers will be
(AP Photo/Nati Harnik)
involved in research and
development, supply
chain management and 3,000 employees at its Iowa. between 320 and 350 jobs
headquarters in Omaha, in The Naperville office, from there will move to the
some key administrative Lincoln, and across the Mis- about an hour southwest of city after the cuts.
souri River in Council Bluffs, the Chicago, will close and ConAgra, which makes
functions.
The company has around
VW confirms Poetsch to become chairman amid scandal
FRANKFURT, Germany (AP) shareholders’ meeting slat- the members of a five- statement seeking to clarify mine who was responsible.
— Volkswagen has con- ed for Nov. 9. It said that an member board committee their investigation into what On Thursday, however,
firmed chief financial offi- investigation into the firm’s that is to monitor the prog- possible role former Volk- they said there had been
cer Hans Dieter Poetsch will conduct carried out by law ress of the investigation into swagen CEO Martin Winter- a “misunderstanding” by
become board chairman firm Jones Day will take “at how cars were equipped korn played in the scandal. some and said they did
as the automaker faces least several months” and with software that turned About a dozen criminal not currently have any
a scandal over cars that would not be completed on emission controls during complaints have been evidence against Winter-
were equipped to cheat for the meeting. official testing but turned filed by citizens, and one korn, but that he had been
on U.S. government emis- That meant the company them off them during ordi- by VW itself, as allowed named in the investigation
sions tests. would not be ready to nary driving. under German law. Based as the head of Volkswa-
Poetsch, 64, has been the provide “well-founded” The committee will be upon those complaints the gen.
company’s CFO since answers to shareholders’ headed by the current prosecutors said Monday They said their initial release
2003. The company said he questions. The decisions acting board chairman, they had opened an inves- mistakenly said it was an
would be appointed to the were made during seven Berthold Huber. Huber is tigation. They said it would “investigation against Prof.
board and then elected hours of “intense discus- the former head of the IG concentrate on the suspi- Dr. Winterkorn.”
chairman. sions” at a board meeting Metall industrial workers’ cion of fraud committed “The goal of the investiga-
The board said in a state- on Wednesday evening, union. through the sale of vehicles tion is in particular to clarify
ment Thursday that it was the statement said. Meanwhile, prosecutors with manipulated emissions responsibility,” the prosecu-
postponing a special Volkswagen also named in Braunschweig issued a data, and aimed to deter- tors’ office said.q