General Mills is cutting hundreds more jobs as it continues to restructure its operations to help offset dipping profits due to shifting consumer tastes.
The Golden Valley-based company expects to cut 675 to 725 jobs, a Securities and Exchange Commission (SEC) report filed Thursday shows, but most of the cuts will affect international jobs, with only about 20 positions in Minnesota expected to be eliminated, the Star Tribune reports.
This is expected to cost the company between $57 million and $62 million, mostly for employee termination benefits, the filing shows, but the move could generate up to $50 million in annual savings for General Mills by the time it is completed in May 2017, the filing notes.
This is the latest round of layoffs in the past year as General Mills copes with declining profits, a result of consumer tastes shifting to healthier, non-processed food options. General Mills eliminated 1,400 jobs last year – including many in Minnesota. It also announced it would be shuttering two plants, resulting in more job losses.
General Mills has experienced six straight quarters of declining profits. Its next earnings statement is expected to be released July 1, the Minneapolis-St. Paul Business Journal says.