Business

Kellogg to lay off more than 230 workers in Charlotte this summer

This Feb. 1, 2012, file photo shows Kellogg’s cereal products in Orlando, Fla.
This Feb. 1, 2012, file photo shows Kellogg’s cereal products in Orlando, Fla. AP

As part of a company-wide cost-saving effort, Kellogg Co. is closing its distribution center in west Charlotte this summer, a move that will result in the loss of over 230 jobs here.

In a filing with the state, the Michigan-based cereal and snack maker said it is permanently closing its facility at 1816 West Point Drive Ste. A. The last day of work for most of the 233 affected Charlotte employees is expected to be between July 29 and Aug. 11, the company said.

Kellogg is also closing its facilities at 657 Brigham Road in Greensboro, and 250 employees will lose their jobs there, the company said in a separate filing.

The company said earlier this year it was shutting down nearly 40 distribution centers nationwide in order to reduce “complexity and cost structure while driving growth and profitability for the company and its retail partners.”

Instead of delivering products directly to stores, Kellogg will instead use a warehouse system that’s already used by Pringles and the rest of its North American business, the company said.

Kellogg spokeswoman Kris Charles confirmed that the two North Carolina facilities will close as part of the cost-saving effort.

“While this is the right move for the company to achieve our long-term objectives, it was a difficult decision because of its impact on employees,” Charles said. She added that Kellogg is “optimistic” that affected employees will find work with some of the company’s biggest retail partners.

Kellogg’s cost-cutting moves come amid weakened demand for products like breakfast cereal. In the first quarter, the company reported sales of $3.26 billion, down 4.1 percent from the same period a year ago and below Wall Street expectations.

In 2014, Kellogg also closed one of its snack plants in Charlotte, cutting 195 jobs. The move was part of a larger cost-cutting effort: At the time, Kellogg also cut production lines in Ohio and closed plants in Australia and Canada, while it increased production at a Thailand plant and built a new one in Malaysia.

Katherine Peralta: 704-358-5079, @katieperalta

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