Kellogg to Cut 7% of Global Workforce in Cost-Saving Plan
Posted in: UncategorizedKellogg Co. the maker of Corn Flakes and Rice Krispies, will cut 7% of its global workforce, or about 2,000 jobs, as part of a four-year cost-saving plan amid a persistent slowdown in breakfast items and snacks.
The program, known as “Project K,” will result in pretax charges of $1.2 billion to $1.4 billion, the Battle Creek, Michigan-based company said today in a statement. Kellogg had about 31,000 employees as of Dec. 29, according to regulatory filings.
Kellogg and competitors such as JM Smucker Co., Kraft Foods Group and ConAgra have struggled to get U.S. families to stock up their shopping carts as unemployment and economic uncertainty make them too cautious to spend more. With store promotions failing to spur sales growth, Kellogg has resorted to cost-cutting to boost profitability.
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