Kellogg to cut 2000 jobs despite profit growth

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)