Kellogg cutting 66 Battle Creek jobs

Kalamazoo and Battle Creek
kellogg company headquarters battle creek_1542069626917.jpg.jpg

An undated photo shows Kellogg’s headquarters in Battle Creek.

BATTLE CREEK, Mich. (WOOD/AP) —  Kellogg’s workforce in Cereal City is shrinking.

The company announced Tuesday its cutting 150 salaraied jobs, including 66 based in Battle Creek. Kellogg said its job cuts and staff reorganization will be complete by the end of 2020.

Kellogg says the cuts are part of its “Deploy for Growth Strategy” to ensure the company has appropriate staffing to support its smaller Kellogg North American business as the company sells off its Keebler and Famous Amos cookie brands, as well as other sweet snacks businesses to Ferrero Group. Kellogg says with fewer brands, it needs a “simpler, more agile” infrastructure.

The Battle Creek-based company said Tuesday the action will result in pretax charges of approximately $35 million, including $20 million in severance and termination benefits.

The company says the changes will make Kellogg “better positioned for long-term, sustainable growth.”

After the sale was announced in November, Battle Creek City Manager Rebecca Fleury said because of the deal, as many as 60 jobs could vanish in the city. However, Kellogg said the number of local positions being affected was around 30 in the corporate offices.

Kellogg says its $1.3 billion deal with Ferrero Group is expected to close at the end of July.

Kellogg’s shares fell 1.5% to $55.69 in late morning trading Tuesday.

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