Kellogg to Lay Off 7% of Its Global Workforce - East Idaho News
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Kellogg to Lay Off 7% of Its Global Workforce

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11613 FrostedFlakes?  SQUARESPACE CACHEVERSION=1383755883469PRNewsFoto/Live Nation(BATTLE CREEK, Mich.) — Kellogg’s earnings lack crunch, largely because Americans are eating less breakfast cereal.

And now the company that makes Frosted Flakes, Rice Krispies and Special K said it plans to slash its global workforce by approximately 7 percent by the end of 2017.

The staff reductions are part of a four-year cost-saving plan the company is calling “Project K.” Kellogg anticipates the program “will drive future growth in revenues, gross margin, operating profit, and cash flow,” according to a company press release.

“We are excited by the potential and opportunities we see for growth in the categories in which we operate,” Kellogg president and CEO John Bryant said in a statement. “As a result, we are making the difficult decisions necessary to address structural cost-saving opportunities which will enable us to increase investment in our core markets and in opportunities for future growth.”

“The marketplace is constantly changing and evolving and we must adapt,” said Bryant.

Cereal brands are facing more competition from products including oatmeal bars and Greek yogurt.

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