Kellogg cutting 150 jobs as part of Keebler sale
Food company is selling two cookie brands to Ferrero for US$1.3 billion
Kellogg Co. is cutting 150 salaried jobs across North America as part of the previously announced sale of its cookie and fruit snack businesses.
The Battle Creek-based company said Tuesday the action would result in pretax charges of approximately US$35 million, including $20 million in severance and termination benefits.
Kellogg announced in April that it was selling its Keebler and Famous Amos cookie brands--as well as its fruit snack, pie crust and ice cream cone businesses--to Italy's Ferrero International for $1.3 billion.
That sale is expected to close at the end of July. Kellogg said its job cuts and staff reorganization would be complete by the end of 2020.
Kellogg's shares fell 1.5% to $55.69 in late morning trading.