Kellogg’s RXBar chops 20% of its workforce

By Gill Hyslop contact

- Last updated on GMT

Despite its entry into the UK market, RXBar has laid off 20% of its workforce
Despite its entry into the UK market, RXBar has laid off 20% of its workforce

Related tags: RXBAR, Layoff, Kellogg

The Chicago-based protein bar producer acquired by Kellogg for $600m last year has laid off 40 employees.

The layoffs come at the end of a strong year for RXBar and just as the company saw distribution growth, launching into the UK​ with a new website for overseas shoppers to purchase the protein bars or sign up as a wholesaler.

“The brand is extremely healthy. Nielsen data shows that our retail sales have more than doubled this year,”​ said a company spokesperson, adding the layoffs were due to the changing needs of the business.

She noted infrastructure adjustments “will better enable us to invest in key areas of the business,”​ while “an evolution of our resource management strategy, including the rescoping of some existing roles, introduction of new capabilities and evolving activities”​ will better support business objectives in 2019 and beyond.

RXBar – founded by Peter Rahal in 2013 – had earlier this year moved into a nine-story office building to support its growing headcount of more than 200 people.

It recently introduced a line of single-serving packets of flavored almond and peanut butters, which parent company Kellogg is hoping will drive sales and offset the increased costs that are hurting profits.

In October, Kellogg reported its third-quarter operating profit decreased by 2.6% to $478m below analysts’ expectations.

The cereal maker also reduced its full-year forecast from 7% to 5%.

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