Kellogg is to lay off or relocate around 300 employees, as part of a reorganisation of its direct store-door delivery operations in the south-east of the US.
The US food group, the world’s largest cereal maker, said that, under the restructuring, it has extended offers to exit 517 distribution route franchise agreements with independent contractors.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Terminating those agreements and employee severance costs will result in total charges of between US$75m and $85m, Kellogg said in a filing with the Securities and Exchange Commission yesterday (19 July).
Around $38m of the charges related to franchised route settlements will be taken in the second quarter, and Kellogg expects the reorganisation to be completed by the end of the year.
