{"id":251797,"date":"2024-08-06T20:43:43","date_gmt":"2024-08-06T20:43:43","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/08\/06\/kelloggs-is-reorganizing-downsizing-and-cutting-hundreds-of-jobs\/"},"modified":"2025-06-25T17:13:00","modified_gmt":"2025-06-25T17:13:00","slug":"kelloggs-is-reorganizing-downsizing-and-cutting-hundreds-of-jobs","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/08\/06\/kelloggs-is-reorganizing-downsizing-and-cutting-hundreds-of-jobs\/","title":{"rendered":"Kellogg’s is reorganizing, downsizing, and cutting hundreds of jobs"},"content":{"rendered":"

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WK Kellogg Co. is closing one U.S. cereal plant and downsizing another as part of a plan to consolidate its operations in newer facilities.<\/p>\n

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The company said Tuesday it will close its Omaha, Nebraska, plant by the end of 2026. It also plans to scale back production at its plant in Memphis, Tennessee, starting next year.<\/p>\n

WK Kellogg said it will increase production and invest in new infrastructure, equipment and technology at its plants in Battle Creek, Michigan; Lancaster, Pennsylvania; and Belleville, Ontario. The company said it plans to invest $390 million in new technology and infrastructure and will incur a one-time charge of $110 million in restructuring costs.<\/p>\n

Battle Creek-based WK Kellogg said the plan will result in a net loss of 550 jobs, a number that includes hirings at the plants that will increase production. The company didn\u2019t immediately respond when asked Tuesday how many workers would lose their jobs in Omaha and Memphis.<\/p>\n

In a statement, Omaha Mayor Jean Stothert said she didn\u2019t learn of the planned closure until Tuesday morning.<\/p>\n

\u201cI\u2019m certainly disappointed that Kellogg\u2019s would make such a significant announcement this way,\u201d Stothert said. \u201cAfter more than 75 years in Omaha, Kellogg\u2019s will leave a big void.\u201d<\/p>\n

WK Kellogg\u2019s Omaha plant was the\u00a0epicenter of a strike<\/a>\u00a0against the company in 2021, when workers walked off the job for two months to protest a two-tier wage structure and other issues. At one point,\u00a0Kellogg sued its union<\/a>, saying striking workers were blocking entrances to the Omaha plant.<\/p>\n

The\u00a0strike ended in late 2021<\/a>\u00a0when the company agreed to raises and other benefits.<\/p>\n

The reorganization comes amid a decline in U.S. demand for cereal. Cereal sales boomed during the pandemic, when families were home and eating breakfast together. But they have struggled since then. Unit sales of cereal have fallen 4.2% over the last year and fell 3.6% the year before that, according to Nielsen IQ, a market researcher.<\/p>\n

WK Kellogg Co.\u00a0was formed last year<\/a>\u00a0when its former parent the Kellogg Co. \u2014 which was founded in 1906 \u2014 split into two companies. WK Kellogg retained the cereal business, including brands like Frosted Flakes, Fruit Loops, Rice Krispies and Raisin Bran. Kellanova, based in Chicago, houses many of the company\u2019s best-sellers, including Pop-Tarts, Pringles, Eggo waffles and Cheez-Its.<\/p>\n

WK Kellogg said Tuesday its net sales fell 4% to $672 million in the April-June period. The company got some boost from higher pricing and growing sales of premium products like Special K Zero. But its overall sales volumes fell by 4.8%, and the company said it felt some pressure from store-brand cereals as customers sought better value.<\/p>\n

WK Kellogg shares dropped more than 7% Tuesday.<\/p>\n<\/div>\n

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