Kellogg to cut 7% of workforce in cost-cutting plan
Kellogg Co. says it 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, dubbed “Project K,” will result in pretax charges of $1.2 billion to $1.4 billion, the Battle Creek, Mich.-based company says. Kellogg had about 31,000 employees as of Dec. 29, 2012, according to regulatory filings.
Competitors such as J.M. Smucker Co., Kraft Foods Inc. and ConAgra Foods Inc. have battled to get consumers to stock up their shopping carts as unemployment and declining incomes make them spend less. With store promotions failing to spur sales growth, Kellogg has resorted to cost-cutting to boost profitability.