General Mills to cut more jobs, close UK and New Zealand plantStaff writer ▼ | October 29, 2015
General Mills announced another round of job cuts, the latest set of layoffs as it seeks to improve profitability amid lackluster sales.
Big problems Customers are shifting toward other products
General Mills, which in January launched its expense-reduction program, said in a regulatory filing that it recently broadened the scope of the program "to identify opportunities to streamline our supply chain outside of North America" and plans to cut 285 positions as it closes manufacturing facilities in Berwick, United Kingdom and East Tamaki, New Zealand.
The company said it would take a resulting charge of between $47 million to $52 million, $25 million to $30 million of which it will book in its fiscal third quarter ending in February.
General Mills said the layoffs and plant closures will be completed by the end of fiscal 2017.
General Mills put forward a proposal which could lead to the closure of its manufacturing facility in Berwick, United Kingdom.
The proposal is subject to consultation with union officials and employee representatives, which could lead to the closure of the site by the autumn of 2016. If implemented, closure of the site would affect approximately 265 employees.
The Berwick facility manufactures baking mixes and refrigerated and frozen dough products. It has been operated by General Mills since 2001.
The company alsop announced a preliminary decision to close its manufacturing facility in East Tamaki, New Zealand.
The preliminary decision is subject to consultation with union officials and employee representatives. If the decision becomes final, the company would expect the facility to close by the end of this calendar year. The closure, were the decision to become final, would impact 20 employees.
The East Tamaki facility manufactures produces fresh pasta, sauces, and refrigerated soup products. It has been operated by General Mills since 2002. ■