BATTLE CREEK, Mich. — The Kellogg Company is about to embark on what it calls an “efficiency program” that will mean that “changes to the organization’s design and infrastructure will reduce the company’s global workforce by approximately seven percent,” according to a statement issued November 4.
The program, called “Project K,” was announced as the company released its third quarter results for 2013. Net earnings during the quarter amounted to $326 million, or about 90 cents per share. Net earnings in the same quarter in 2012 were 89 cents.
Project K was designed to “drive growth and efficiency” over the next four years, the company release said, and top brass at Kellogg concentrated on the company’s financial health and product successes in a Monday morning conference call. At the end of the call, Kellogg President and CEO John Bryant said the commitment of the company’s employees is key to its success, and he thanked staff for their hard work.
Kellogg acquired Pringles earlier in the year, and the unit has performed well. Double-digit growth was reported in some international markets.
The release did not have details on where the staff reductions will take place.