Thursday, June 21, 2012
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COVINGTON -- A "handful" of General Mills employees at the Covington facility have been impacted by company-wide layoffs, according to a spokesperson.
General Mills announced in May that it would eliminate 850 positions globally as part of a cost savings plan "designed to improve organizational effectiveness and focus on key growth strategies."
At the company's plant on Industrial Boulevard in Covington, "There are a handful of individuals who have been impacted," according to spokeswoman Maerenn Jepsen. She added that "we won't be detailing the impact by location."
According to a press release issued by the company last month, "plans also include asset-related costs of approximately $13 million pre-tax associated with the write-down of selected production equipment. The company will record total restructuring charges of approximately $109 million pre-tax, reflecting one-time employee separation expenses and the asset-related costs. Approximately $94 million of these restructuring costs will be recorded in the fourth quarter of fiscal 2012, which ends on May 27, 2012. The remaining costs will be recorded in fiscal 2013."
Savings from these restructuring actions will be reinvested to support the company's future growth strategies and to accelerate innovation across General Mills' global business platforms, the press release states.
The Covington facility has been operating for more than 20 years and is one of the world's largest producers of Cheerios. A celebration of the breakfast cereal's 70th birthday was held there last year.