Cereal maker Kellogg Co. to cut global workforce
Update 10:11 a.m.
A Kellogg Co. spokesperson said it's too early to tell how these cuts will affect the workforce in Michigan.
The cuts are coming as part of a "global efficiency and effectiveness program" called "Project K."
Kris Charles of Kellogg sent us this statement:
"Project K is a significant, four-year, global program that will reshape our cost structure and serve as a catalyst for our growth strategy. The likely outcome of this global initiative is that by the end of 2017, we estimate that Kellogg will have approximately 7 percent fewer employees worldwide than we do today. We aren’t disclosing further specifics about Project K, however, this isn’t a one-size-fits all initiative. Each of Kellogg Company’s geographic regions and functions will implement the initiatives that make the most sense to enhance efficiency and effectiveness. It’s too early to estimate potential impacts in Michigan or the Battle Creek area at this time."
Kellogg says it will trim its global workforce by 7 percent as part of a cost-cutting plan, with the cereal maker citing weaker-than-expected sales for the year.
The company called the changes "a global four-year efficiency and effectiveness program" in their press release.
The maker of Frosted Flakes and Eggo waffles said it expects earnings per share for the year to be toward the lower end of its previous forecast.
The workforce reductions will take place by 2017.
For the quarter, Kellogg Co. says it earned $326 million, or 90 cents per share. Not including one-time items, it earned 95 cents per share, which was above the 89 cents per share Wall Street expected.
A year ago, the company earned $318 million, or 89 cents per share.
Revenue slipped to $3.72 billion and was short of the $3.73 billion analysts expected.
Michigan Radio's Steve Carmody will have more on how the cuts could affect workers here in Michigan. The company is headquartered in Battle Creek, Michigan.