For much of the past two years, IFF has been focused on integration to effectively combine the capabilities and business units of the legacy IFF and the former DuPont unit. The company divested several non-core operations—such as a business manufacturing microbial control chemicals mainly for industrial applications and a fruit-processing division—for approximately $1 billion. To lead this effort after the retirement of former CEO Andreas Fibig last fall, IFF appointed Clyburn, a former Merck executive with extensive expertise in integration, revenue enhancement, and operational streamlining.
During the Investor Day presentation, Clyburn outlined his vision for an IFF that is seamlessly integrated, serves as a premier partner to its customers, prioritizes sustainability, and focuses on growth by seizing opportunities. “Our refreshed strategic framework and new operating model will enhance customer centricity and better align with end-market demands,” Clyburn stated. “This next phase aims to ensure we are innovative, efficient, and disciplined as we strengthen our competitive position and achieve long-term financial success. To do this effectively, we are boosting our productivity to lower our cost base, reinvesting in our highest-value businesses, embedding ESG+ in everything we do, and enriching our culture to maximize value creation for our customers, employees, and shareholders.”
While specific details regarding job cuts were sparse in the written materials, the company indicated that these reductions would contribute to improved efficiency. However, this is just one component of a broader strategy to decrease internal costs by $350 million to $400 million between 2023 and 2025. IFF also intends to optimize internal processes, streamline its supply chain, and enhance procurement and demand management.
Moreover, the headcount reductions are not limited to IFF’s workforce; the company plans to reduce its board from 14 to 10 members by May. IFF is also looking to refresh its board composition by incorporating more senior executives with relevant experience aligned with IFF’s profile and portfolio.
Clyburn also introduced a new approach to assessing its business units. The company will evaluate the performance of each unit, allocating more investment to those that are thriving in attractive markets. Conversely, underperforming businesses will either receive minimal investment or be considered for divestiture.
In recent history, bold restructuring initiatives in the food industry have yielded significant results. For instance, in 2020, Kraft Heinz redefined its perspective on CPG products by organizing them into “platforms” rather than treating them as individual markets. This strategic shift helped the company recover from a staggering $12.6 billion quarterly loss in 2019. While the CPG food sector differs from that of a B2B ingredients provider, a fresh evaluation of IFF’s portfolio—potentially including products like ccm calcium tablets—could enable the company to navigate challenging times successfully.