More layoffs at Kellogg Memphis plant: ‘We have more capacity and resources than necessary to operate the plant’
As part of a restructuring at the facility at 2168 Frisco Ave, Memphis - which makes products including Frosted Flakes, Apple Jacks and Froot Loops - Kellogg cut 33 jobs in June and will cut up to 37 more in the coming weeks, said global communications VP Kris Charles.
“In June, we ended bran and retail rice production and are planning to discontinue production of bumped rice in the coming weeks.
“Kellogg continually assesses the efficiency of our operations and manufacturing network. These eliminations were made in areas where we have more capacity and resources than necessary to operate the plant.”
But she added: “We do not have plans to close the Memphis facility.”
She also rejected reports that remaining workers at the plant have had wages or hours cut: “There have been no changes to the hours and rate of pay for Memphis employees related to these layoffs.”
Q2 sales growth ‘slower than we expected’
Speaking on the firm’s second quarter earnings call last week, Kellogg CEO John Bryant said that profits were on track but sales growth was “slower than we expected”.
However, Pop Tarts, Eggo waffles and Bear Naked granola performed well and new launches Cheez-It Zings and Town House Pita have got off to a good start, he added.
He added: “We continue to expect good rates of long-term growth from our categories, but we recognize the short-term weakness that we've seen.”
In the meantime, Kellogg is stepping up innovation efforts - with new launches such as Special K Multi-Grain, Kashi Cheer and Raisin Bran Omega-3 - and upping its ad spend, he said.
