General Mills has announced plans to cut up to 1,400 jobs worldwide as part of its company-wide restructuring actions and Accelerate strategy, as cited by Star Tribune.
A report from the Minneapolis-based online newspaper states that General Mills told employees that layoff plans include 700 to 800 jobs in the US and Canada, as well as 500 to 600 international positions.
General Mills filed a Form 8-K back in May to announce restructuring actions that are designed to better align its organisational structure and resources with its strategic initiatives.
The company has since filed an embedded report to update its disclosure concerning costs and says it “now expect[s] to incur charges of approximately $160 million in fiscal 2021, primarily reflecting severance expenses”.
“We expect these actions to be completed by the end of fiscal 2023 with a total cost of approximately $170 million to $220 million, of which approximately $130 million to $180 million will be cash,” General Mill said in the filing.
As part of its restructuring, the company plans to reshape its portfolio and has also revealed management changes.
Meanwhile, in an emailed statement sent to FoodBev, Kelsey Roemhildt, senior manager of media and investor relations and corporate communications, said: “As we shared in our 8-K filing, we are making organisational changes to ensure General Mills continues its momentum.
“We are investing in key areas such as digital, data and technology, ecommerce and others that are critical to our future success.”
General Mills has witnessed a year of strong sales driven by at-home food consumption amid the pandemic, and therefore expects a return to slower growth now demand is waning.
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