Kellogg May Fire 700 Workers, Cut Plant Size

Kellogg Co. said it may shut a portion of its cereal plant in Battle Creek, Mich., and fire up to 700 hourly and salaried workers to trim costs. The cuts at its largest and oldest North American plant would account for 4.8% of the company’s work force of 14,500 worldwide. The maker of Rice Krispies, Frosted Flakes, Pop Tarts and other breakfast foods said the move would help save $35 million to $45 million a year. Carlos Gutierrez, who took over as chairman and chief executive in April, has been firing workers and slashing costs to free up money for new products and for promotions. Kellogg closed off 19 cents at $33.81 on the NYSE.