Kellogg Could Fire Up to 20% of Salaried Staff

Kellogg Co. is expected to fire as much as 20% of its U.S. salaried staff, or about 400 workers, as the world’s largest cereal maker seeks cash to pay for new products, ads and promotions, analysts said. The maker of Frosted Flakes and Rice Krispies in September said that it would review all 2,000 salaried workers at its Battle Creek, Mich., headquarters and other administrative expenses. The moves are part of a push to cut $100 million in annual costs. The firings would be the first major cost-cutting move taken by President and Chief Operating Officer Carlos Gutierrez, who took his post in June. He’s expected to move quickly to stem market share losses to makers of discount cereals such as Quaker Oats Co. and Ralcorp Holdings Inc. by boosting ad spending, cutting cereal prices and spending more on new products. The cuts could be announced as early as this week, analysts say. Kellogg shares rose 69 cents to close at $36.63 on the NYSE.