BATTLE CREEK — Global food manufacturer Kellogg Co. could lay off as many as 223 workers in 2018 as part of a larger manufacturing restructuring program.
The cuts come as Kellogg (NYSE: K) looks to streamline its operations by focusing on high-growth areas. Specifically, the company plans to focus on bran and rice production at its Battle Creek facility, which will result in the idling of two undisclosed product lines.
The company does plan to keep the lines in place “should volumes improve.”
Kellogg also plans to shutter its warehouse to transition to a direct-ship distribution model.
The cuts are expected to begin in the first quarter of 2018 and continue throughout the year, a spokesperson for Kellogg said.
The Bakery, Confectionary, Tobacco Workers and Grain Millers (BTCGM) Union Local 3-G will analyze the layoffs and provide input before the final decision is made.
“This was obviously devastating news to our entire membership as well as this community, and all of the families possibly impacted by this announcement,” said Trevor Bidelman, president of the BTCGM Local 3-G. “At this time this is the only information we have. Over the course of the next 60 days, the Union’s sole intention will be to work with the Kellogg company and the community leaders to avoid this decision becoming the company’s course of action. Our sincerest hope is that with cooperation and engagement the ultimate decision will be to not follow through with this contemplated change that will have a drastic negative impact on the lives of many people in order to increase the earnings of a select few.”
This recent round of job cuts comes after Kellogg announced in January that it was laying off upward of 250 workers as part of a company-wide cost-cutting program, as MiBiz reported at the time.