Kellogg Company is based in downtown Battle Creek. Photo via flickr.com
Kellogg Company has announced it plans to cut 223 jobs in the region.
The Battle Creek-based food maker will lay off the salaried and hourly employees from its plant in Battle Creek. The company will also idle two production lines at the facility and end warehouse operations.
The move is the latest in a number of efforts by the company to streamline its workforce after lower-than-expected sales in 2013.
"As part of our ongoing effort to improve the sustainability and viability of our U.S. ready-to-eat cereal plants in support of our 2020 Growth Plan, we have continued to look for opportunities to ensure we have the right manufacturing capacity — in the right locations — to better meet our current and future production needs and the evolving needs of our consumers," said Kris Charles, a spokesperson for Kellogg Company.
This most recent move is intended to streamline operations and decrease the total cost-per-pound to improve margins. Kellogg will also increase production of bran cereals and invest in bumped rice production for Rice Krispies Treats.
"We considered other options across the network to achieve our objectives of addressing both cost and capacity concerns. None were viable alternatives, but we are open to discussions with community leaders in Battle Creek," Charles said.
The Battle Creek union will have the opportunity to review the plan and provide input before it is implemented in 2018.
Charles added that the company is committed to helping impacted workers by engaging with the Battle Creek community to provide resources and employment opportunities.
In January, Kellogg announced its plan to cut 250 jobs from its downtown Battle Creek headquarters. The company offered employees impacted by the change severance benefits and outplacement services.
Kellogg also announced plans in February to close 39 distribution centers nationwide, resulting in more than 1,000 layoffs. Workers affected by the closures were offered severance benefits and retention packages.
Project K was announced by Kellogg Company in 2013 and is a global effort to streamline production following a trend of poor sales.
The plan originally sought to trim the company’s global workforce by seven percent.