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Kellogg may lay off 223 employees at Battle Creek plant

Aug 31, 2017

Kellogg wants to make its West Michigan plant more sustainable, but that could mean more than 200 employees will be laid off.

The cereal company released a statement saying its effort to be more efficient is a part of its national initiative to better meet production needs.

More from the statement:

Today, we are announcing our intent to simplify and streamline our operations by focusing each of our RTEC plants on at least two scaled manufacturing platforms, such as rice or bran. If finalized, these changes would optimize the capacity we currently have, allow for future growth and decrease the total cost-per-pound in our RTEC network, which will improve margins.

Specifically, at our Battle Creek plant, we plan to simplify operations to increase production of our bran cereals and invest in bumped rice production for Rice Krispies Treats – two platforms that are growing. This is important because, as a company, we feel that it is critical to better position the plant for success. In addition, we would idle two existing lines at the plant, but keep them in place and ready should volumes improve. This realignment of production would also mean ceasing operations in the warehouse and transitioning to a direct-ship model of distribution, similar to other plants in the network.

Union members at the Battle Creek plant will have a chance to voice their concerns before a decision is made.

The company says it will help those employees find other jobs in the area, if they are laid off.

The company says it will make a decision in the next 60 days.

The union in Battle Creek will have a chance to give their input. But it's unclear whether that would change the company's decision.