Sector News

General Mills To Cut Another 700 To 800 Jobs

October 1, 2014
Food & Drink
(RTTNews) – Packaged foods company General Mills Inc. said Tuesday that it expects to cut another 700 to 800 jobs, primarily in the U.S., as part of a multi-year restructuring plan. This is in addition to job cuts announced by the company in mid-September.
 
In a regulatory filing, General Mills said that under Project Catalyst, a restructuring plan designed to increase organization effectiveness and reduce overhead expense, it will eliminate about 700 to 800 positions.
 
General Mills had announced some restructuring actions on September 18, but was unable to determine the estimates total costs to be incurred in connection with Project Catalyst at that time.
 
The company had said at that time that under Project Century, it will close two plants to cut costs, leading to the elimination of about 680 jobs.
 
Under the Project Century restructuring program, the company plans to consolidate its yogurt manufacturing capacity and exit the Methuen, Massachusetts facility in the U.S. Retail and Convenience Stores and Foodservice supply chains. The company will also close its Lodi, California facility plant to eliminate excess cereal and dry mix capacity in its U.S. Retail supply chain.
 
General Mills said Tuesday that it will record total restructuring charges of about $135 million to $160 million pre-tax, primarily reflecting one-time employee termination benefits. Of this, about $110 million to $135 million will result in future cash expenditures.
 
General Mills expects to complete the restructuring actions by the end of fiscal 2015 and generate annual cost savings of about $125 million to $150 million, beginning in fiscal 2016. In fiscal 2015, the company expects these actions and other efforts to reduce overhead costs and generate about $40 million of savings.
 
The company noted that these estimates are separate from the estimates it provided previously in connection with the Project Century North American supply chain restructuring plan.
 
GIS closed Tuesday’s trading at $50.45, down $0.18 or 0.36 percent on a volume of 2.82 million shares.

comments closed

Related News

October 2, 2022

Drinktec 2022: In review

Food & Drink

In the lead-up to the world-famous Oktoberfest – which celebrates Bavarian tradition, beer and the festival spirit – Munich was already buzzing with activity by the time the doors opened to Drinktec 2022 on 12-16 September. The atmosphere was lively, with approximately 50,000 visitors from 169 countries in attendance.

October 2, 2022

Alan Jope to step down as Unilever CEO

Food & Drink

Unilever has announced CEO Alan Jope’s decision to retire from the company at the end of 2023, after five years at the helm. The announcement comes less than a year after a failed attempt by Unilever to buy GlaxoSmithKline’s consumer healthcare business and just months after activist investor Nelson Peltz joined the company’s board.

October 2, 2022

Lakeland Dairies names Colin Kelly as next group CEO

Food & Drink

Lakeland Dairies has announced that Colin Kelly will assume the role of group CEO following the retirement of Michael Hanley at the end of the year. Kelly will take up the position in January 2023, while Hanley will step down in December this year.