Kellogg Co. cuts finance jobs in Battle Creek, Canada
Kellogg Co. cuts jobs in the company’s North American financial unit, which will affect workers in Battle Creek and Ontario as well as its plant and field sales division in the United States .
The company said the move was part of its Project K initiative, launched in 2013 to promote efficiency and reshape the business for future growth. Its new financial structure will be delivered through Global Business Services in a three-tier model emphasizing its local, regional and global reach. These GBS teams will be located in Battle Creek, Grand Rapids and Mumbai, India.
Kellogg declined to say how many employees would be affected.
Upon completion of Project K in 2017, the company said it estimates it will have approximately 2,300 to 2,500 jobs at its headquarters in Battle Creek. Company spokeswoman Kris Charles told the Enquirer that this would represent a net effect of “around 100-200 roles” over the four-year period.
“As we have said, the ebb and flow of employees to and from a head office campus is a natural part of doing business as a global company,” Charles said Thursday. “We remain committed to Battle Creek.”
Charles said company employees who have been made redundant are “encouraged to apply for available positions within Kellogg.”
The grain and snack giant didn’t shy away from making tough decisions on Project K. Last year, the company said it planned to relocate some HR and supply chain jobs from Battle Creek, some of which have moved to contractor-operated global service centers and others to the North America Global Business Service Center in Cascade Township near Grand Rapids.
He also did not disclose how many employees and contractors would be affected by the move.
The company’s workforce in Battle Creek has undergone dramatic changes since 1999, when the company closed the southern plant, laid off about 550 employees and moved some of the grain production to Mexico.
When the southern plant closed, the company estimated that the move would save Kellogg between $ 35 million and $ 45 million a year.
Kellogg has also garnered a critical backlash in his hometown since the company announced the opening of its Global Business Services operation in Grand Rapids in February 2014. The operation was expected to employ between 300 and 600 people, some of whom were to be relocated from Battle . Creek and others being recruited as new recruits.
More recently, the company has had to contend with declining grain sales. However, CEO John Bryant affirmed Kellogg’s commitment to Battle Creek through investments and economic development efforts, such as the BC Vision initiative.
Bryant cited the company’s million-dollar investment in downtown WK Kellogg Institute for Food and Nutrition Research since the mid-2000s to encourage product growth and innovation. He reiterated this point this week in an article published by Crain’s Detroit Business.
Kellogg’s annual meeting of shareholders will be held on April 29 at the WK Kellogg Auditorium. Participants must be current holders of Kellogg shares.
Meeting audio and presentation slides will be streamed live on the company’s investor website at Investor.kelloggs.com.