VADNAIS HEIGHTS, Minn. – Kellogg’s informed the state of Minnesota that it will be laying off 216 employees at its distribution facility in Vadnais Heights as part of a national cost-cutting measure.
The last day for distribution center employees will come sometime in the two weeks after July 8, and the last day for snacks retail execution employees will come in the two weeks after August 4, reports KMSP.
Kellogg’s first began cost savings measures as part of its “Project K” initiative in 2013, reports the Star Tribune. The initiative, now also including the process of dismantling its direct-store-delivery system, is focused on job cuts and increased efficiency. Kellogg’s projects the initiative will save $475 million annually by 2018.
Similarly, Kellogg’s announced layoffs for 278 workers in New York, Breitbart News reported Sunday.
Kellogg’s and Breitbart were embroiled in a highly publicized spat at the end of last year. On November 29, Kellogg’s announced it would pull all advertising from Breitbart’s website, citing concerns of “hate speech.” The next day Breitbart began calls for its readers to boycott Kellogg’s in retaliation, based on the pulling of ads, and the company’s support for a series of left-leaning political campaigns. This includes such activity as funding opposition to voter ID laws.
The company’s stock price closed at $73.26 on November 29, 2016. Since then it has closed as high as $76.44 on February 9, 2017, and as low as $68.94 on May 3. It closed Monday at $72.70.
Breitbart News reported that Kellogg’s experienced a $53 million loss in the fourth quarter of 2016. In the first quarter of 2017 the company bounced back with a net income of $252 million, reports Food Dive. This is primarily driven by the company’s cost-cutting measures, as company revenue came in lower than expected by analysts.