Menu Foods Income Fund is chopping more staff as it copes with rising recall costs stemming from the tainted pet food crisis, the company said Wednesday.

The pet food maker said it would cut another 10 to 15 per cent of its workforce as it boosted the costs of the biggest recall in its history to $55 million — up from the most recent estimate of $45 million in May.

Menu Foods Income Fund three-month chart

Menu Foods raised its estimate of recall expenses "because the volume of customer returns and associated costs are now estimated to be greater than originally anticipated," the company said in a statement.

The company also disclosed that chief executive chief executive officer Paul Henderson has taken a 22 per cent cut in compensation. In the most recent fiscal year, Henderson made about $875,000 in salary, bonus and other incentives.

Other senior executives and directors have also had their compensation chopped by up to 20 per cent.   

Last March, the company began an extensive recall of many pet foods following a contamination of its products that led to the deaths of dozens of cats and dogs.

The problem was eventually traced to China, where a supplier had added a toxic chemical —  melamine — to wheat gluten.

Menu Foods is facing several class action lawsuits in Canada and the United States.

Its units have fallen by more than two-thirds since the contamination and recalls became public. They closed trading at $2.26 Wednesday, down six cents. Their 52-week high is $7.47.

(With files from the Canadian Press)