Kellogg’s has announced that it will cut 223 jobs at its Battle Creek site in Michigan in 2018, in a bid to streamline operations.
This will be the second layoff of the year for the company’s Battle Creek operations, after announcing in January that it would slash 250 jobs over the next four years to cut costs and boost efficiency.
It plans to keep two existing lines at the Battle Creek plant idle, ready to be put to use should there be a need for increased production.
The company, which is headquartered in Battle Creek, said it is working with union officials to help find new opportunities for impacted employees. If finalised, the cuts would begin in early 2018 and conclude by the end of the year.
Kellogg’s spokesman Kris Charles said: “We are announcing our intent to simplify and streamline our operations by focusing each of our ready-to-eat cereal plants on at least two scaled manufacturing platforms, such as rice or bran.
“If finalised, these changes would optimise the capacity we currently have, allow for future growth and decrease the total cost-per-pound in our ready-to-eat cereal network, which will improve margins.”
In its latest sales report, Kellogg’s saw its its net sales fall by 2.5% to $3.19 billion in the second quarter of the year. It also recorded an increase in income of 0.7%, up to $282 million.
With consumers moving away from traditional processed breakfast cereals towards on-the-go alternatives, Kellogg’s is struggling to maintain sales. CEO John Bryant said last month that the company is on track to deliver on its full-year financial targets.
© FoodBev Media Ltd 2018