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VOL. 132 | NO. 147 | Wednesday, July 26, 2017

Kellogg Cuts 117 Jobs at Rossville Facility

By Patrick Lantrip

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(Daily News File/Andrew J. Breig)

Kellogg Co. has informed state officials it plans to permanently lay off 117 workers at its Eggo plant at 585 Morrison Road in Rossville.

According to a WARN (Worker Adjustment and Retraining Notification) Act notice filed with the Tennessee Department of Labor and Workforce Development, the layoffs will occur between Sept. 24 and Dec. 3.

Some of the employees are represented by a collective bargaining agreement, according to the notice.

Signed into law in 1988, the state’s WARN Act requires employers with more than 100 employees to provide a 60-day notification of plant closings and mass layoffs.

The news comes less than two months after Kellogg informed state officials that it planned to close its Memphis facility at 1751 Shelby Oaks Drive. This closing, which is effective July 29, resulted in 172 layoffs.

Kellogg also operates a cereal manufacturing facility at 2168 Frisco Ave. in southeast Memphis.

In February, Battle Creek, Michigan-based Kellogg outlined a plan to shift distribution for its U.S. snacks business to a warehouse model used by other segments of its U.S. business. The model relocates inventory from distribution centers, such as the Memphis facility, to retailers’ warehouses.

In that February announcement, Kellogg said it would provide severance and benefits, as well as offer retention packages for impacted employees to help ensure business continuity.

The transition is expected to wrap up by year’s end.

Known as “Project K,” the plan is the largest restructuring program in the company’s history, according to Kellogg Co.’s investor relations website.

“Initially a four-year program, the cost reduction elements were principally related to restructuring our supply chain network, and moving transactional processes to a shared-services model,” Kellogg chairman and CEO John Bryant said in a Feb. 22 letter to shareholders.

Bryant went on to say his company expects that annual cost savings generated from Project K will be approximately $600 million to $700 million in 2019.

Founded in 1906 by W.K. Kellogg, the company produces more than $13 billion in annual revenues and employs more than 37,000, selling food in 180 countries worldwide.

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