1661880830008 Organizationalchart

Kellogg Signals Layoffs in Europe

May 21, 2019
Kellogg is preparing for a retrenchment of its European business.

Kellogg is preparing for a retrenchment of its European business that will include job and contract terminations and relocation costs, according to a filing with the U.S. Securities and Exchange Commission.

In the May 19 filing, the company announced “a proposed reorganization plan for the European business designed to simplify the organization, increase organizational efficiency, and enhance key processes.” The plan will involve a charge of $50 million, of which $33 million will be employee-related costs that include “severance and other termination benefits.” The remaining $17 million “will primarily consist of charges related to relocation, third party legal and consulting fees, and contract termination costs,” the filing states.

Kellogg had $2.35 billion in European regional sales last year, which came to about 17% of total sales. Organic net sales in Europe were down 3.6% last year, and “currency-neutral adjusted operating profit” for the region was down 3.7%.

Kellogg has manufacturing facilities in European countries including the UK, Belgium, Spain, Austria and Poland. In its latest annual report, the company noted that Brexit, Great Britain’s impending exit from the European Union, could increase Kellogg’s cost of goods sold through new tariffs.

Earlier this spring, Kellogg agreed to sell its cookie business to Italy’s Ferrero Group.

Sponsored Recommendations

Learn About: Micro Motion™ 4700 Config I/O Coriolis Transmitter

An Advanced Transmitter that Expands Connectivity

Micro Motion™ G-Series Coriolis Flow and Density Meter

Micro Motion G-Series: market-leading compact design featuring advanced process diagnostic capability.

Embracing Sustainability using Advanced Measurement Instrumentation

A practical guide to greeningyour brewing operationsusing advanced measurementinstrumentation.

Get Hands-On Training in Emerson's Interactive Plant Environment

Enhance the training experience and increase retention by training hands-on in Emerson's Interactive Plant Environment. Build skills here so you have them where and when it matters...