Kellogg’s proposed $50m European restructure
A Kellogg spokesperson confirmed the plan with BakeryandSnacks.
“We are proposing a number of changes to our business structure, which will remove duplication and complexity from our regional business and empower us to make the right investment choices to fuel our future growth plans.
“Consistent with our company values and how we always do things at Kellogg we will treat our people fairly, with dignity and respect.”
However, in an SEC filing submitted on May 13 2019, the cereal and snack giant said the changes are subject to consultation processes with employee representatives in the region.
“During this period of consultation, it is not appropriate to make any further comment,” the spokesperson told us.
Costs involved
The Special K and Pringles maker also disclosed the project is expected to result in charges of approximately $50m.
It anticipates employee-related costs will cost around $33m, including severance and other termination benefits.
Other costs will primarily consist of charges related to relocation, legal fees and contract termination costs.
The American multinational expanded to the UK in 1922. Its largest factory is based in Manchester, which is also the location of its European headquarters. Earlier this month, it reported net sales fell by 4% in Europe during the first quarter of the year, due to 'substantially adverse currency translation.'
Kellogg's produces cereal and convenience foods, including cookies, crackers and toaster pastries, which are manufactured and marketed in over 180 countries.
