Food maker plans office with 300-600 jobs
A major Michigan employer is expanding in Grand Rapids.
Battle Creek-based Kellogg said today that it plans to open its North America Global Business Services Service Center in Grand Rapids.
The center will open in the third quarter of 2014 and employ up to 300-600 finance, IT, supply chain and human resources positions once the facility is running at full speed in 2016.
The center will reportedly be at 5300 Patterson Ave. SE. It’s the former location of Zondervan, a Christian publisher.
The selection of Grand Rapids for the North America hub is part of Kellogg’s commitment to Michigan, Kellogg President and CEO John Bryant said.
Kellogg said that more than 40 similar centers are located in Grand Rapids, including Steelcase, Amway and Priceline.com, giving the food maker “access to a pool of qualified talent with experience in strongly service-oriented environments.”
“Grand Rapids is a vibrant community and urban center of a growing region of more than 1 million people,” Bryant said. “As Michigan’s second-largest city, and a short distance from our headquarters, Grand Rapids is known for its proximity to major markets — including Chicago and Detroit — as well as affordable commercial space and a highly qualified workforce.”
The company’s Global Business Services, or GBS, is a key component to its Project K, a multi-year, global growth and efficiency program.
The GBS regional facilities are designed to help Kellogg in its pursuit of a “three-tiered service delivery model” of local, regional and global work.
“GBS will streamline many end-to-end, transactional and repeatable processes that support our business,” Bryant said. “This will result in significant improvements in effectiveness, efficiency and collaboration, while creating new capabilities and enhanced organizational capacity.”
Project K was announced in November and includes a global workforce trim of 7 percent.
The workforce reductions will begin in 2017, and some notifications were sent out in November.
The plan was announced after the company saw weaker-than-expected sales in 2013.
Kellogg already has two facilities in Grand Rapids, including 310 28th Street SE and 5353 Broadmoor Ave. SE.
Kellogg will lease the space at 5300 Patterson Ave. SE, and the cost to get the center online is “confidential,” said Kellogg spokesperson Kris Charles to the Business Journal on Thursday afternoon.
As for a breakout of new employees and transferred employees at the center, Charles said, "Until we define all the work processes transitioning for each function, the exact impact number of impact to employees in other locations is not known.”
“We’re still working through the future state of the organization design,” Charles said.