General Mills likely to slash up to 725 jobs

General Mills, known for manufacturing Cheerios, Bisquick and Yoplait, will cut 675 to 725 jobs in an attempt to reduce costs.

The company’s restructuring plan titled ‘Project Compass’ targets savings of $45m-$50m in annual costs, which also includes around $25m-$30m ofsavings in the new fiscal year.

General Mills is the latest among several companies to face slow US sales due to a growing awareness among consumers, and their shift from cereals and frozen foods to healthier options. As a result, many have been implementing cost-cutting programmes to adapt to global economic challenges, reported the Wall Street Journal.

Other companies to introduce cost-cutting plans are Kellogg’s and Campbell Soup.

According to Reuters, the company’s US sales for the third quarter, which ended on 22 February, increased after five straight quarters of loss, while its international sales fell in the last two quarters.

The company cut around 1,400 jobs last year. In January, it said it was considering shutting down two plants, Methuen in Massachusetts, and Lodi in California, and also removing another 500 job-roles. The company also released a plan in 2012, according to which, it planned to cut 850 jobs.

General Mills’ restructuring project will be completed by the early part of its year ending May 2017. Out of the 43,000 employees as of May last year, around half were outside the US.