General Mills to eliminate 675 to 725 jobs

by Jeff Gelski
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General Mills expects to reduce its workforce by 675 to 725 positions as part of Project Compass.

MINNEAPOLIS – General Mills expects to reduce its workforce by 675 to 725 positions as part of Project Compass, a restructuring plan designed to accelerate long-term growth in the company’s International segment, according to a Form 8-K filed June 25 with the U.S. Securities and Exchange Commission.

Minneapolis-based General Mills expects the restructuring actions will save $45 million to $50 million annually. About $25 million to $30 million of cost savings should come in fiscal year 2016. Total restructuring charges will be in the range of $57 million to $62 million pre-tax, primarily reflecting one-time employee termination benefits. About $54 million to $57 million of the restructuring charges will be recorded in the first quarter of fiscal year 2016. General Mills should complete the restructuring early in fiscal year 2017.

General Mills on July 1 will give results for fiscal year 2015. Through the nine-month period ended Feb. 22, International segment net sales for the company were $3.91 billion, down 3% from the same period of the previous year. Nine-month International segment operating profit was $389 million, which essentially matched operating profit for the same period of the previous year.
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READER COMMENTS (1)

By T.Bishop 6/26/2015 11:34:12 AM
General Mills is laying off hundreds of dedicated, quality people, while the former CEO donates $20 million earlier this year to an affluent business school. It points to everything that is wrong with the current American economy.