Dive Brief:
- General Mills indicated it could cut jobs as part of a new global transformation initiative intended to increase productivity.
- The cereal and snacking company will take a series of “targeted organizational actions” that will be largely completed by the end of fiscal 2028 and result in total charges of about $130 million. General Mills expects to record approximately $70 million of those charges in the fourth quarter of fiscal 2025, primarily from severance expenses.
- In March, General Mills cut its sales and profit forecasts due in part to a slowdown in U.S. snacking and softer demand in away-from-home food channels. Organic net sales are now expected to be down 1.5% to down 2%, compared to previous expectations of between flat to up 1%.
Dive Insight:
Inflation-weary consumers are cutting back on how much they buy, pushing down volumes at General Mills and other food manufacturers. The restructuring comes as a growing number of companies seek ways to enhance their operations and reduce costs.
“Amidst a dynamic external environment, returning General Mills to growth — our number one priority — requires increased investment back into the business,” the company said in a statement. “While this news represents hard choices, they are necessary to fund product innovation, create compelling consumer value and position General Mills for long-term success.”
Several prominent companies have announced plant closures and job cuts this year, including PepsiCo, Conagra Brands and Post Holdings. Earlier this week, jam and sweets maker J.M. Smucker said it will close and pursue a sale of a Hostess manufacturing plant in Indianapolis by early 2026 as part of a plan to consolidate its production footprint.
