General Mills To Sell Or Close 4 Plants, Putting More Than 1,400 Jobs At Stake
General Mills continues to trim their operation in a move to stay competitive according to this Star Tribune report. The company’s been quietly cutting jobs since 2014.
General Mills announced Thursday plans to close or sell manufacturing plants in Brazil, China, Ohio and New Jersey as the company continues to slim down costs in response to massive changes in the packaged-foods industry. The moves put about 1,400 jobs at stake.
The Golden Valley-based company has tentatively decided to close its Vineland, N.J., soup-making facility, the original Progresso Soup plant, a move that would cut 370 employees.
The giant foodmaker has reached a definitive agreement to sell its Martel, Ohio facility for $18 million to Mennel Milling Co., which would then become a supplier to General Mills. If the plant, which makes baking mixes, is closed, 180 people would lose their jobs. A spokeswoman for General Mills said Mennel has expressed interest in interviewing the majority of the current employees for jobs at the plant.
Both of these U.S. actions are subject to union negotiations before they become final.
The food company plans to close or scale-back three international plants, which will result in 420 jobs lost in Brazil and 440 jobs in China.
Since 2014, General Mills has cut approximately 3,400 positions globally.
In an unprecedented move, executives earlier this month separated the company’s high-growth products from its low-growth products, tipping off investors to its cost-cutting strategy. The products made at the two U.S. plants the company plans to shed were in the low-growth category.
The company’s divestments in Brazil and China are in response to different challenges.
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