St Louis-Based Purina To Cut 300 Jobs Despite Tax Cut

ST. LOUIS, MO — Despite a massive corporate tax cut signed into law today by Republican President Donald Trump, Nestle Purina PetCare, a St. Louis-based subsidiary of the global food giant Nestle, has announced that it will cut up to 300 jobs by encouraging employees to take early retirement. Some of those jobs will come from the company's St. Louis headquarters.

Employees were notified in November of the early retirement option that is open to managers and supervisors who are at least 55 years old and have worked for the company for at least a decade.

The company said in a statement that it was too early to provide more specific about the program, but offered an explanation for the move. "The pet care industry is more competitive and changing faster than at any time in our history. In the face of these unprecedented challenges, Nestle Purina continues to be a growth driver and a strategic priority for Nestle. In order for Purina to grow market share, we have launched a major initiative focused on organizational structure and cost-competitiveness that creates opportunities for greater investment in high-growth areas while positioning the organization for continued success."

But, not everyone is convinced by the company's rationale. Missouri's Democratic Senator, Claire McCaskill, decried the move on Twitter. "Not good," she wrote. "We need job growth, not loss."

President Trump signed the Republican Tax Cuts and Jobs Act today before leaving for his Christmas vacation in Mar-a-Lago, Fla. The law gives corporations a massive, permanent tax cut that Republicans say will create jobs and lead to bigger paychecks for workers. Critics say it will balloon the deficit and that corporations will pocket the cash rather than pass it on to workers.

Not good. We need job growth, not loss. https://t.co/zYLO3zoCQA
— Claire McCaskill (@clairecmc) December 22, 2017

Photo by Ron Sachs/News/Getty Images