Kelloggs Co. (NYSE: K) the world’s largest maker of breakfast cereals, apparently is having a difficulty in sales. After reporting another turn down on quarterly sales on its cereal business the company said that it would cut about 7 percent of its workforce by 2017 as well as trim down production capacity.
The company’s cereals business, which includes Special K corn flakes and Rice Krispies, has been struggling rigid competition from General Mills Inc (GISN.N) and private-label cereal brands. Not to mention the growing popularity of yoghurt, frozen egg sandwiches and other breakfast items has also knock the business out.
Chicago TribuneKellogg To Cut 7% Of Global WorkforceForbesFood-manufacturing company Kellogg Kellogg may have beat the Street with its third quarter 2013 earnings report Monday morning, but in some bad news for its global workforce, also announced a …
The sales for the quarter, Kellogg Co. (NYSE: K) says it earned $US326 million ($A346 million), or 90 cents per share. This doest not include a one-time items, it earned 95 cents per share, which was above the 89 cents per share. In 2012, the company earned $US318 million, or 89 cents per share. Their revenue slides to $US3.72 billion and was short of the $US3.73 billion analysts projected.
According to FactSet, Kellogg has 31,000 employees, suggesting the company plans to cut about 2,170 jobs.
“Some employee notifications will take place this week,” the company said in a statement.
Kellogg says the workforce reductions will take place by the end of 2017, along with plant consolidations and other cost-cutting measures it’s dubbing “Project K.”
Stockholm Centralstation Special K flashmob.