Kellogg To Layoff Or Relocate 300 Employees In Reorganization; To Book $75-$85 Mln In Costs - Update
RTTNews) - Thursday, packaged food maker Kellogg Co. (K charts news PowerRating) said in a SEC filing that it may eliminate or relocate 300 employee positions, as part of its plan to reorganize its direct store-door delivery operations in the southeastern U.S. The company said it began notifying the affected employees on July 19, 2007. '
The reorganization plan is to integrate the company's southeastern sales and distribution regions with the rest of its U.S. direct store-door operations. Under the plan, Kellogg said it extended offers to exit 517 distribution route franchise agreements with independent contractors and the offers were substantially accepted.
In connection with route franchise settlements and severance payments, the company plans to book $75-$85 million in total project costs. About $38 million of these charges will be recorded in the second quarter, the company said in its filing. The company currently expects to complete the reorganization by this year-end.
K closed Thursday's regular trade at $52.19.
The reorganization plan is to integrate the company's southeastern sales and distribution regions with the rest of its U.S. direct store-door operations. Under the plan, Kellogg said it extended offers to exit 517 distribution route franchise agreements with independent contractors and the offers were substantially accepted.
In connection with route franchise settlements and severance payments, the company plans to book $75-$85 million in total project costs. About $38 million of these charges will be recorded in the second quarter, the company said in its filing. The company currently expects to complete the reorganization by this year-end.
K closed Thursday's regular trade at $52.19.
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