$109 Million Restructuring Programme at General Mills
US-based food group General Mills has unveiled productivity and cost savings plans designed to improve organisational effectiveness and focus on key growth strategies but which will entail shedding 850 jobs globally. The 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. General Mills is one of the world’s leading food companies, operating in more than 100 countries. Its consumer brands include Cheerios, Haagen-Dazs, NatureValley, Yoplait, Betty Crocker, Pillsbury, Green Giant, Progresso and Old El Paso. Headquartered in Minneapolis, General Mills had net sales of $14.9 billion in 2011.
