General Mills Unveils Restructuring, Including 850 Job Cuts
First Published Tuesday, 22nd May 2012 01:50 pm - © 2012 Dow Jones
Dow Jones NEWSWIRES
General Mills Inc. (GIS) unveiled restructuring plans aimed at improving productivity and cutting costs, moves that are expected to reduce its global workforce by about 850 positions.
The food company, whose brands include Cheerios cereal, Yoplait yogurt and Betty Crocker baking products, has roughly 35,000 employees, according to its website.
The restructuring plan includes organizational changes expected to improve its business alignment, and actions aimed at accelerating administrative efficiencies. Further details weren't provided.
General Mills projected restructuring charges of about $109 million, including $94 million in its current fiscal quarter that ends May 27. The plans include asset-related costs of about $13 million related to write-downs of production equipment.
Food makers industrywide have been under pressure as budget-conscious U.S. consumers push back against price increases aimed at offsetting rising commodity costs.
General Mills in March reported that fiscal third-quarter earnings edged down as higher costs hurt profit margins and sales volume fell due to higher prices.
Shares of the company, which backed its fiscal-year earnings guidance, closed Monday at $38.55 and were inactive premarket. The stock is down roughly 4.6% this year, trailing the broader market.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com