General Mills Looks To Lay Off 285 Workers As It Proposes To Close Down 2 Plants
In its latest SEC filing, General Mills has disclosed that it is looking to close down two more plants to further streamline the company’s operations and make some capacity reductions. Should the latest proposal be approved, the multinational manufacturing company is looking at laying off around 285 workers.Advertisement
This time around, Gneral Mills is looking at closing down its manufacturing facilities in Berwick, United Kingdom as well as in East Tamaki, New Zealand. The Berwick site has been up and running since 2001. It is responsible for manufacturing General Mill’s baking mixes as well as both refrigerated and frozen dough products. Should the closure of the said site be approved, the closure can reportedly take place during the autumn of 2016 and affect around 265 employees. Meanwhile, General Mill’s East Tamaki site has been in operation since 2002. It is responsible for manufacturing fresh pasta, sauces and refrigerated products. Should the closure of the said site be approved, 20 employees will reportedly be affected and closure can be facilitated as early as the end of this year.
The proposed closure of both East Tamaki and Berwick sites comes as an extended part of the company’s Project Century, which General Mills had launched during its fiscal year 2015.
Should the plant closures be approved, General Mills is looking at total restructuring charges between $47 to $52 million with $11 million in severance expense and around $36 to $41 million in other charges that are primarily fixed asset write-offs. Moreover, the said expense also includes cash charges amounting to $22 million.