Kellogg To Shed 2,000 Jobs Worldwide By 2018
Published on Nov 6 2013 12:27 PM in A-Brands
The world's largest maker of breakfast cereals said it could slash more than 2,000 jobs from its global workforce by 2018 as part of a major cost cutting initiative.
Overall, that accounts for nearly 7% of its total global workforce.
Kellogg reported a better-than-expected third quarter adjusted profit on 28 September, helped by cost cuts.
Its cereals business, which sells Corn Flakes, Chocos and Eggo Waffles, among other iconic brands, is fighting competition from private-label cereals.
Increasing popularity of yoghurt, frozen egg sandwiches and other breakfast items has also hit the business. Sales at Kellogg's US morning foods business, including cereals, fell 2.2% in the third quarter.
"We are making the difficult decisions necessary to address structural cost-saving opportunities which will enable us to increase investment in our core markets and in opportunities for future growth," said John Bryant, Kellogg's president and chief executive.
The job losses are part of Project K, a four-year cost-cutting program that Kellogg launched on Monday.
The measures are expected to the save the company in the region of $425 million to $475 million a year by 2018.
© 2013 - European Supermarket Magazine by Enda Dowling