Food Service & Agriculture, Human Resources, and Manufacturing

Food maker cutting 150 jobs

June 18, 2019
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Kellogg Company is based in downtown Battle Creek. Photo via flickr.com

A food maker is eliminating 150 jobs as part of a previously announced re-organization and divestiture.

Battle Creek-based Kellogg Company is making the cuts to salaried jobs across North America as part of the pending sale of its Keebler and Famous Amos cookie brands, as well as its fruit snack, pie crust and ice cream businesses to Alba, Italy-based Ferrero International for $1.3 billion, according to Kellogg Company today.

About 66 of the 150 affected employees are based in Battle Creek.

The divestiture, which the Business Journal reported on in April, is expected to close at the end of July. The job cuts and staff re-organization are expected to be “substantially completed” by Dec. 31, 2020.

“This transaction will result in a smaller, more focused portfolio with fewer brands, SKUs and reporting segments — requiring a simpler, more agile and right-sized organization,” said Kris Bahner, a Kellogg spokesperson, in a statement to the Business Journal.

Kellogg Company said the restructuring is expected to result in cumulative pre-tax charges of about $35 million, including $20 million in severance costs and other termination benefits.

Kellogg also announced in February it was cutting 79 jobs — 67 of which were in Battle Creek — and last November cut 30 positions in Battle Creek. Both actions were part of the North American restructuring plan.

Kellogg had 2018 sales of about $13.5 billion, up from $13 billion in 2017 and down from $14.8 billion in 2013.

The company’s stock (NYSE: K) fell 1.84% to $55.51 this afternoon.

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