American cereal producer Kellogg managed another profit growth at equal turnover, but quickly followed up the news with the announcement of a restructuring plan. It aims to cut 7 % of its jobs over the next 4 years.
Nearly 250 million euro net profit
Kellogg had a 3.7 billion dollar (2.7 billion euro) net turnover in the third quarter, along the lines of what analysts had predicted. It also remained relatively equal to last year’s third quarter, although the net profit increased 2.5 % to 326 million dollars (240 million euro).
After announcing its quarterly results, Kellogg divulged its restructuring plan, called ‘Project K’. The move should bring in a yearly amount between 425 million and 475 million dollars (315 million to 350 million euro) by 2018. Kellogg will be reducing its worldwide workforce by 7 %, some 2,000 jobs, in order to assist Project K.
“We are making the difficult decisions necessary to address structural cost-saving opportunities which will enable us to increase investment in our core markets and in opportunities for future growth”, Kellogg CEO John Bryant has stated.
(translated by Gary Peeters)