World’s Biggest Cereal Company Continuing to Lay Off Workers

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Kellogg Announces More Layoffs

World-famous manufacturer of breakfast cereals, Kellogg Company, has announced that the company will be permanently laying off 117 employees at its Rossville, Tennessee plant.

In a document filed under the Worker Adjustment and Retraining Notification Act (WARN Act) with the Tennessee Department of Labor and Workforce Development, the company said that the layoffs will be taking place between late September and early December.

The Rossville facility is known for manufacturing products for Kellogg’s “Eggo” brand, which is mostly known for waffles, but also includes other breakfast foods.

This is not the first time that this facility will witness layoffs. In June 2016, Kellogg laid off 155 employees at the Rossville plant, citing efficiency as the main motivation. Kellogg said that it was getting rid of three less-efficient production lines at the facility, which had more than 400 employees before the layoffs.

Since the beginning of this year, employees at Kellogg have been facing mass layoffs around the country as the cereal maker is making a transition toward a new delivery model. Kellogg is doing away with its company-owned warehouses and distribution centers, which were being maintained under its old Direct Store Delivery (DSD) model.

The company has shifted to a new delivery model under which it will be delivering its goods straight from the factory to the retailers’ warehouses, thus bypassing the need for its own distribution centers. As part of this strategic plan, Kellogg is shutting down dozens of its distribution centers across the states, which is causing hundreds of Americans to lose their jobs. The company plans to complete the transition to the new model by end of this year. Until then, the closures and layoffs will continue.

The layoffs at the Rossville manufacturing plant do not seem to be the result of the new delivery strategy, although they are a part of the company’s overall vision to achieve efficiencies. Kellogg has been facing a decline in revenue in the past few years, and has been looking for ways to cut costs to prevent its bottom-line numbers from slipping.

Sources

Kellogg Laying Off 117 Fayette County Workers,” The Daily News, July 25, 2017.

Kellogg to lay off 155 workers at Rossville plant,” News Channel 3, June 23, 2016.

Categories: Job Cuts, News

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