General Mills planning more job cuts

by World Grain Staff
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MINNEAPOLIS, MINNESOTA, U.S. — General Mills, Inc. has announced another round of job cuts as part of Project Century. Project Century originally was launched in fiscal 2015 as a review of the company’s North American manufacturing and distribution network to streamline operations and identify potential capacity reductions, but the program recently was expanded to identify opportunities outside of North America.

“As part of the expanded project, in the second quarter of fiscal 2016, we notified employees and their representatives of the proposal, pending consultation, to close manufacturing facilities in our international segment supply chain located in Berwick, United Kingdom, and East Tamaki, New Zealand,” General Mills said in an Oct. 29 filing with the Securities and Exchange Commission.

The Berwick plant makes baking mixes and refrigerated and frozen dough products. It has been operated by General Mills since 2001. The East Tamaki plant makes fresh pasta, sauces and refrigerated soup products.

If implemented, General Mills said the actions would affect approximately 285 positions. The company said it expects to incur total restructuring charges of approximately $47 million to $52 million, including approximately $11 million of severance expense and $36 million to $41 million of other charges, primarily fixed asset write-offs. The expenses include cash charges of approximately $22 million, General Mills said.

Additionally, General Mills said it expects to record approximately $25 million to $30 million pre-tax of restructuring charges in the third quarter of fiscal 2016.

In July, the company said it planned to save $285 million to $310 million in its 2016 fiscal year as a result of cost reductions.

The actions are expected to be completed by the end of fiscal 2017.

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