Kellogg cutting 223 jobs at Michigan cereal plant

Cereal maker's 'Project K' cost-cutting program extended through 2019

In an effort to streamline operations and cut production costs, Kellogg announced it would lay off 223 employees next year at its ready-to-eat cereal plant in Battle Creek, Michigan.

In a statement to Detroit Free Press, Kellogg spokesman Kris Charles said the company was simplifying operations to focus on production of its bran cereals and "invest in bumped rice production for Rice Krispies Treats, two platforms that are growing."

The company doesn't plant to dismantle existing production lines in case circumstances improve and demand increases.

Cereal sales have been sluggish for Kellogg -- and its competitors General Mills and Post -- in recent years as consumers look to healthier alternatives for breakfast.

To increase savings, Kellogg introduced "Project K" in 2014 -- a cost-cutting program to generate between $425 and $475 million of annual cost-savings by 2018. The company recently announced it was extending the program through 2019.


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