Kellogg to cut 2000 jobs despite profit growth | RetailDetail

Kellogg to cut 2000 jobs despite profit growth

Kellogg to cut 2000 jobs despite profit growth

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)

Questions or comments? Please feel free to contact the editors


Are Chinese prisoners working for H&M and C&A?

20/02/2018

British former journalist Peter Humphrey has accused C&A and H&M of using forced labour. He claims to have seen how Shanghai prisoners were forced to work for Western chains, something the retailers will now investigate.

Chanel acquires stake in online retailer Farfetch

19/02/2018

French fashion label Chanel obtained a minority stake in British Farfetch. It wants to use the online retailer’s expertise to create more digital innovations for its own customers.

Monoprix wants to acquire web shop Sarenza

19/02/2018

Store chain Monoprix, part of French Groupe Casino, entered negotiations to acquire online shoe seller Sarenza, one of France’s prime online brands.

Zalando expands collaboration with German retailers

16/02/2018

Zalando has further expanded its collaboration with physical retailers in Germany. Shoe stores were already able to ship through Zalando and now clothes stores can too.

Kiabi opens largest Belgian store in Westland Shopping Center

15/02/2018

French clothing chain Kiabi will open its fifth Belgian store in the Westland Shopping Center in Anderlecht. This will become its largest Belgian store to date, spread across 1,800 sqm.

H&M warns for difficult 2018

15/02/2018

Swedish fashion group H&M warns that 2018 could be yet another difficult year for the company. It is working to improve online sales, but store turnover will most likely continue to drop.

Back to top