Number of Layoffs: 2,200
Layoffs As % of Workforce: 7%
Kellogg (K) announced on its earnings call Monday that layoffs are looming for 7% of its global workforce over the next four years. Based on FactSet data showing Kellogg has 31,000 employees, that means looming layoffs for roughly 2,200 workers.
The reason for the layoffs? Cereal.
Yes, Kellogg cited slowing cereal sales as the catalyst for cut costs via layoffs and other moves. Competition from on-the-go breakfast items and from other companies has taken a toll on Kellogg’s breakfast foods business.
The resulting four-year cost-cutting program is called Project K, which will consolidate supply chain infrastructure in addition to cutting jobs. It aims to strengthen existing businesses in core markets and increase growth in developing and emerging markets.
By the end of the program, Kellogg expects cash savings to tally between $425 million and $475 million per year.