Darden CFO Richmond Retires; To Slash 60 Jobs

(RTTNews) - Darden Restaurants Inc (DRI) Tuesday announced the retirement of its Chief Financial Officer Brad Richmond, along with several leadership changes, and said it will cut 60 jobs as part of restructuring efforts to increase the focus on restaurant operations, improve the guest experience and expand its market share.

The actions include streamlining its support functions to further facilitate guest-focused work that benefits the restaurants and reduces general and administrative spending; eliminating a layer of operations field management at Olive Garden and LongHorn to provide greater visibility and accountability for restaurant leadership; and closing Darden's aviation operations.

Apart from improving focus and providing better support for the company's restaurants, the measures will lead to about $20 million in annualized cost savings through a reduction in general and administrative expenses. The company expects savings of about $10 million this fiscal year which will mitigate anticipated near-term cost increases in dairy, beef and other commodities.

Brad Richmond, CFO for the past eight years, announced his intention to retire after 32 years with the company. His retirement will be effective at the end of March 2015 or sooner if a successor is appointed. Internal and external candidates will be considered as the company identifies his replacement.

Daisy Ng, Chief Human Resources Officer, will transition out of her role after more than nine years with Darden. Danielle Kirgan, currently Senior Vice President, Human Resources, Specialty Restaurant Group and Total Rewards, will assume Ms. Ng's position effective January 5, 2015. Ms. Ng will assist in the transition and support the work of the Board of Directors including the work of the Compensation Committee.

Bob McAdam, SVP Government and Community Affairs for the past eight years, will depart the company at the end of the calendar year. He will assist the company through the end of the calendar year to transition his responsibilities to other functions within the company.

In addition to the leadership changes, the company announced it is streamlining its support staff structure in an effort to create a more efficient and nimble organization. This restructuring will have a direct impact on about 60 employees and the company will also eliminate 25 open positions.

The new structure is designed to eliminate inefficiencies and ensure the support functions are focused on guest-facing initiatives. The changes occurred at all levels across the marketing, development, aviation, external affairs and field operations management functions.

The company anticipates incurring one-time charges during this current second fiscal quarter of 2015. The charges primarily consist of severance and other costs associated with the Company's private aviation operation. Details will be discussed on the company's second quarter earnings call on December 16.