Kellogg Co. To Close Nearly 40 Distribution Centers, Eliminate 1,000 Jobs
Squeezed by falling sales, Kellogg Co. announced plans to shutter distribution centers across the nation and to lay off more than 1,000 workers.
The company has watched sales fall since 2013, and earlier this year Kellogg said it would close just under 40 distribution centers and transition to a warehouse system that eliminates the need for the company to ship products directly to retailers, ABC News reports. The company said that decision allows it to spend more money on advertising, which it hopes will generate more sales.
Consumer trends are shifting as more Americans move away from processed foods, and Kellogg’s competitors, including Post and General Mills, have also been forced to cut costs and change strategies. While Kellogg did not disclose specifics on its cuts and closures, the company’s filings with state agencies show it will close centers in Texas, Ohio, North Carolina and Tennessee.