By Tess Stynes
General Mills Inc. announced a fresh restructuring plan, saying
its expects to eliminate roughly 675 to 725 positions abroad, the
latest round of cuts at the cereal maker, in an effort to reduce
costs and invest more in innovation in its international
business.
The Minneapolis-based company, which has about 43,000 employees
globally, expects to post pretax restructuring-related charges of
$57 million to $62 million, according to a regulatory filing
Thursday.
General Mills said the new restructuring plan, which it calls
"Project Compass," targets annual costs savings of $45 million to
$50 million, including roughly $25 million to $30 million for the
recently started fiscal year.
The company cut about 1,400 jobs in 2014, and in January, it
said it would close two plants and eliminate another 500 jobs. In
2012, the company had unveiled a previous restructuring plan and
said it would cut 850 jobs.
General Mills and several other major U.S. food companies
recently have been posting disappointing results, and unveiling
cost-cutting programs in an effort to adapt to shifting consumer
tastes and global economic challenges. Big packaged-food companies
have been wrestling for years with diminished demand for
established products as consumers increasingly are interested in
items deemed healthier or more natural.
General Mills has said its international businesses, especially
in emerging markets, are a great opportunity for growth. In fiscal
2014, they represented 30% of the company's $17.9 billion in sales,
up from 25% in 2012. General Mills plans to announce its fiscal
2015 results on Wednesday.
Annie Gasparro contributed to this article.
Write to Tess Stynes at tess.stynes@wsj.com
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