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Kellogg Plants To Close In Australia And Canada

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Kellogg Plants To Close In Australia And Canada

Kellogg is planning to close manufacturing plants in Australia and Canada as it makes the first of its planned cuts to slimline its operations.

The decision is part of the company’s four-year, "Project K efficiency and effectiveness programme" which they hope will "generate a significant amount of savings" incorporating a 7% cut of its workforce worldwide by 2017. 

The Kellogg’s plant in London, Ontario Canada, will close by the end of 2014, resulting in the loss of more than 500 full-time jobs.

The employees were told the news during a staff meeting. “As with any project of this scope and one that impacts people, these are difficult decisions,” John Bryant, president and chief executive of Kellogg Company said in a statement.

“We are very mindful of the impact these changes will have — particularly to our employees. As our employees and others would expect from Kellogg, we will help those who are impacted through their transitions.”

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Just last month, the company announced that it was laying off 110 workers by January 2014.

Kellogg’s has been in London, Ontario since 1924.

It will also shut a snacks facility in the Australian town of Charmhaven in New South Wales. Almost all traditional cereal makers are facing a decline in sales, as more consumers the world over choose breakfast meals such as shakes and cereal bars over pouring a bowl of cereal. As a result, the London plant has produced less of their 27 different varieties of cereal every year.

“Cereal sales have declined and we have significant excess capacity in our cereal manufacturing network,” said Kellogg’s company spokeswoman, Kris Charles.

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Kellogg had about 31,000 employees globally at the end of 2012.

© 2013 - European Supermarket Magazine by Enda Dowling

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