Kellogg will cut its global work force by 7%
Kellogg Co. on Monday reported third-quarter net sales of $3.7 billion and also announced a four-year plan to cut costs that will include reducing its global work force by 7%, or about 2,000 jobs.
Though the company largely met earnings expectations, its U.S. morning food sales declined 2.2% to $883 million in the quarter ending Sept. 28, Kellogg said.
Its U.S. snacks sales also declined, falling 2.4% to $886 million in the third quarter.
Kellogg is not alone in suffering revenue drops amid a poor economy. Other food companies such as Kraft Foods Inc. have struggled to get customers to spend more money at the grocery store.
Michigan-based Kellogg said its plan to cut costs will include consolidating its supply-chain structure and eliminating excess capacity.
“We are making the difficult decisions necessary to address structural cost-saving opportunities which will enable us to increase investment in our core markets and in opportunities for future growth,” said John Bryant, Kellogg’s chief executive.
Kellogg shares rose 2.2%, or $1.33, to $63.62 Monday on the New York Stock Exchange.
ALSO:
Airbus calls on the airline industry to stop the seat squeeze
Low inflation means no hurry to taper stimulus, Fed official says
Manufacturers shrug off government shutdown, keep expanding
