Golden Valley, Minnesota-based General Mills is currently implementing its 2017 restructuring plan leading to mass layoffs.
According to General Mills Chairman and CEO Jeff Harmening. “In the third quarter of fiscal 2017, we approved restructuring actions designed to better align our organizational structure with our strategic initiatives. This action will affect approximately 600 positions and we expect to incur approximately $76 million of net expenses relating to these actions, all of which will be cash. We have recorded $1.4 million of restructuring charges in the nine-month period ended February 25, 2018 relating to these actions. We recorded $73.1 million of restructuring charges in the third quarter of fiscal 2017. We expect these actions to be completed by the end of fiscal 2018.” Many of the layoffs have already occurred, but there is no guarantee that additional layoffs will not occur.
Harmening continues, "Fiscal 2018 represented an important first step in returning our business to sustainable topline growth. We made significant progress toward competing more effectively this year, with strong innovation, marketing, and in-store execution driving positive organic sales growth in each of our last three quarters. And we moved to reshape our portfolio for future growth with the acquisition of Blue Buffalo, a fast-growing, highly profitable business that is leading the transformation of the U.S. pet food category. While our full-year profit results fell short of our initial plans, we finished the year delivering growth in sales, margins, profit, and EPS in the fourth quarter."
It appears that the changing habits of consumers is resulting in a significant reduction in traditional breakfast products and snacks. Therefore, it should come as no surprise that General Mills will continue to shed products, plants, and employees to redeploy savings into products with greater upside.
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