Kellogg Starts $45M North American Supply Chain Upgrade
September 17, 2021
September 3, 2021, Kellogg started a reorganization plan for the North
America supply chain network, designed to drive increased productivity.
The implementation of the reorganization plan is subject to satisfaction
of any collective bargaining obligations. No production facilities are
expected to be closed as a result of this plan, which instead involves
shifting production of various products to optimal lines across the
Americas network. The
The overall project is expected to result in cumulative pretax charges of approximately $45 million. Cash costs are expected to be approximately $25 million. The Company currently anticipates employee-related costs totaling approximately $4 million, which will include severance and other termination benefits; and other cash costs totaling approximately $21 million, which will primarily consist of charges related to capital expenses. Non-cash costs are expected to be approximately $20 million and primarily consist of accelerated depreciation and asset write-offs.