General Mills Could Cut Over 1,400 Jobs As Part Of Restructuring Plans

By Tomi KilgoreMarketsMarketWatch Pulse

General Mills Inc. disclosed Thursday that it will cut 420 jobs in Brazil and 440 jobs in China, as part of a restructuring of certain international product lines. The job cuts are a result of the snack giant's plan to close a snacks manufacturing facility in Marilia, Brazil, to cease production of meals and snacks at its facility in Sao Bernardo do Campo, Brazil and to cease production of underperforming snacks at its Nanjing, China facility. The company also said in the filing that it made a "tentative decision" to close its facility in Vineland, New Jersey, which would affect 370 jobs. In addition, the company reached an agreement to sell its dry mixes plant in Martel, Ohio, which will affect 180 jobs. General Mills expects to record charges of $42 million for its moves in Brazil and China. The closure of its Vineland plant is expected to cost $67 million, while the sale of its Martel plant will lead to a loss of $11 million. The stock, which tacked on 0.6% in premarket trade, has run up 24% year to date through Wednesday, while the S&P 500 has gained 6.3%.

Copyright © 2016 MarketWatch, Inc.

Continue Reading Below