General Mills, a Minneapolis-based food maker of Cheerios, Hamburger Helper and Yoplait, announced Tuesday of its cost-saving restructuring process, which includes the elimination of 850 jobs globally.
One of the world’s leading food companies, General Mills said in a news release Tuesday that it is undergoing productivity and cost-savings measures in order to focus on growth strategies and organizational effectiveness.
The company’s restructuring phase includes changes to staff and enhance administrative effectiveness. Therefore, General Mills will cut 850 jobs across the globe that would affect administration and support, but the company did not state where the cuts will take place.
It also includes $13 million in asset-related costs associated with specific production equipment as well as $109 in total restructuring charges. All of the savings will be reinvested to assist with General Mills’ growth strategies and innovative business platform – its target fiscal 2012 earnings per share still remains to be $2.53 to $2.55.
Approximately $94 million will be recorded in the fourth quarter of 2012 (May 27) and the remaining will be recorded in fiscal 2013.
In 2011, General Mills reported total fiscal 2011 net sales of $14.9 billion. It maintains a workforce of 35,000 across the world and has 79 production facilities with 49 located in the United States, 12 in Asia, five in Canada and five in Latin America.
It also offers consumers 43 different brands, such as Lucky Charms, Haagen-Daz, Bisquick and Cinnamon Toast Crunch.
During Tuesday’s morning trading session at the New York Stock Exchange, General Mills’ shares were up six cents at $38.61.