Kellogg To Cut 765 Jobs
BATTLE CREEK, Mich. (AP) _ Kellogg Co. announced today that it is cutting 765 jobs following a third quarter in which profits for the world’s largest cereal maker dropped 31 percent.
Kellogg said 525 salaried jobs and 240 contracted positions are being cut as part of a restructuring plan aimed at reducing costs by $105 million worldwide.
The company has 2,500 salaried workers. The cuts will affect workers at Kellogg’s Battle Creek headquarters and other North American operations.
``We regret the adverse impact on employees leaving the company,″ Kellogg chairman Arnold G. Langbo said.
In October, Kellogg posted third-quarter earnings of $141.9 million, a 31 percent drop over year-ago profits. The company blamed a soggy cereal market and the cost of investments designed to strengthen its international market share.
About one-third of the people cut were eligible for retirement, said Joseph Stewart, Kellogg’s executive vice president of communications.
Fred Jeffers of Lakeview, a research technician who worked for more than 30 years for Kellogg, told today’s Battle Creek Enquirer he was pleased that he was offered an early retirement package.
``I’m a Battle Creek kid and there’s not a better company in the world than Kellogg,″ Jeffers said. ``They’ve gone out of their way to help people.″
Nomi Ghez, an analyst with Goldman Sachs, said some corners of Wall Street were expecting larger changes.
``This is a positive, but they have to do much more,″ she said. ``As long as their market share continues to deteriorate, all these cost savings are not going to get their stock moving.″