DALLAS (AP/WWJ) — The Kellogg Co. has confirmed plans to close distribution centers in Fort Worth and Houston and lay off 421 workers permanently.
The Battle Creek, Michigan-based breakfast and snack food giant notified the Texas Workforce Commission of its plans in letters dated Friday.
The workers’ last day on the job is scheduled to be between July 29 and Aug. 11 for distribution center employees and Aug. 4 and Aug. 17 for snacks retail execution employees, most of whom work away from the distribution centers.
This is part of an ongoing trend at the cereal giant which may cut as many as 1,100 jobs this year, per mlive.
“The layoffs are a result of the company leaving its direct store delivery business this year in favor of using retailers’ warehouses and networks,” mlive added.
“Starting in the second quarter of this year, Kellogg will switch to a warehouse distribution model that its U.S. Snacks business already uses. Pringles and its frozen foods division already use that model.”
The layoffs will affect 201 workers at the Fort Worth distribution center and 221 at the Houston distribution center.
In a company press release in February, Kellogg Chairman and Chief Executive Officer John Bryant said closing the distribution centers was a difficult decision because of the impact on employees. He said, “We are doing everything we can to help our employees manage through this transition.”
*Copyright, Associated Press