Kellogg shutters distribution centers, lays off workers
Kellogg shutters distribution centers, lays off workers
Cereal maker Kellogg's is laying off 1000s of workers from distribution sites in three states. Image courtesy of Flickr user jeepersmedia
01 June, 2017, 02:01
"While this is the right move for the company to achieve our long-term objectives, it was a hard decision because of its impact on employees", Kellogg's spokesperson Kris Charles said in a statement.
It's also shutting down a distribution center in Memphis, Tenn., eliminating 172 workers. It has been cutting costs as sales decline amid changing consumer trends.
At the time, Kellogg's wouldn't disclose how many local workers would be affected, saying only that its distribution centers employed about 30 full-time workers on average.
Kellogg's closure of the distribution centers and the job cuts are part of a plan to change the company's distribution model announced this February. Earlier this year, the maker of Frosted Flakes, Pop Tarts and Eggo waffles said it would close almost 40 distribution centres and use a warehouse system.
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The Kellogg Company says they first began notifying employees back in February. That's a system the company already was using for the majority of its products.
The Battle Creek, Mich. -based company notified Missouri on Friday that it's closing the Earth City distribution center between July 29 and August 17.
Other closings include centres in Houston and Fort Worth, Texas, affecting 420 workers.
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