By Chelsey Dulaney And Lisa Beilfuss
General Mills Inc. said Thursday that it plans to cut more than
600 jobs with the closure of two more plants over the next three
years, as the maker of Cheerios cereal and Hamburger Helper looks
to improve profitability amid lackluster sales.
The Minneapolis company has been cutting jobs and closing plants
as it struggles with Americans' growing shift away from packaged
foods.
General Mills said it has notified union members that it plans
to close its West Chicago, Ill., plant to cut excess cereal and dry
dinner capacity. General Mills said the decision, which could
impact about 500 jobs, is pending negotiations with the labor
union.
General Mills also decided to close its snacks manufacturing
plant in Joplin, Mo., a move that will impact 120 jobs.
As a result of the plant closures, General Mills said it would
take about $81 million in charges during fiscal 2016. The Illinois
plant, expected to shut in 2019, will result in a total cost of
about $120 million. The Missouri closure, which will be completed
by the end of fiscal 2018, will result in roughly $12 million in
costs.
The planned closures follow General Mills' January announcement
that it would close two Pillsbury dough factories, adding to the
roughly 1,400 job cuts it announced last year. It also announced a
fresh restructuring plan last month, saying it expects to cut 675
to 725 positions abroad.
General Mills is carrying out a multiyear cost-cutting effort
that it has warned would involve reducing its production capacity
for slower-growth foods, like cereal and cake mix.
The company said earlier this month that it expects cost-cutting
efforts to save $285 million to $310 million in its 2016 fiscal
year.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com and Lisa
Beilfuss at lisa.beilfuss@wsj.com
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