Kellogg is to cut more than 100 jobs from its operations in North America in the wake of the sale of a clutch of snacks assets to Ferrero.
The US giant’s disposal of a basket of brands to Ferrero, announced in April, is expected to be finalised at the end of next month.
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Today (18 June), Kellogg set out the financial impact – and consequences for jobs – of the sale, which it said is part of moves to focus on other businesses to give the company “balanced top- and bottom-line growth”.
A Kellogg spokesperson said: “This transaction will result in a smaller, more focused Kellogg North America portfolio with fewer brands, SKUs and reporting segments – requiring a simpler, more agile and right-sized organisation to support it.
“We are announcing changes to ensure that we are appropriately resourced to support the smaller Kellogg North America business, as well as better positioned for long-term, sustainable growth. In total, approximately 150 employees in North America will be leaving the company.”
In a filing with the US Securities and Exchange Commission, Kellogg said the changes would cost it US$35m, pre-tax, with some $20m linked to “employee-related costs”. The moves are expected to be “substantially completed” by the end of 2020.
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By GlobalDataFerrero paid $1.3bn for the Kellogg assets, which included the Keebler and Famous Amos brands, as well as five production plants.
At the time, Kellogg CEO Steve Cahillane said: “This divestiture is yet another action we have taken to reshape and focus our portfolio, which will lead to reduced complexity, more targeted investment, and better growth. Divesting these great brands wasn’t an easy decision, but we are pleased that they are transitioning to an outstanding company with a portfolio in which they will receive the focus and resources to grow.”
Kellogg’s remaining snacks brands in the US include Pringles and Pop-Tarts.
