General Mills to Cut 850 Jobs in Restructuring Initiative

General Mills to Cut 850 Jobs in Restructuring Initiative

Food manufacturer also will write down production equipment.

U.S. food giant General Mills (IW 500/68) said Tuesday it would cut 850 jobs globally in a restructuring plan aimed at cutting costs.

General Mills, maker of Green Giant frozen vegetables, Cheerios and Pillsbury products, also said it would write down some production equipment as part of the restructuring initiative.

The roughly 850 job cuts represent 2.4% of the firm's global workforce of 35,000 employees.

"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 company said.

The Minneapolis-based General Mills generated $14.9 billion in net global sales in its 2011 fiscal year, with almost 70% of that coming from its U.S. retail segment.

General Mills said it would take a $109 million restructuring charge, with $94 million in the current fiscal fourth quarter that ends May 27.

The company confirmed its fiscal 2012 target of earnings of $2.53 to $2.55 per share, excluding certain items.

Copyright Agence France-Presse, 2012

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