Kellogg’s to close London, Ont., plant and lay off 500 workers in 2014
December 10, 2013 by The Canadian Press
The Kellogg’s plant in London, Ont., will close by the end of 2014, resulting in the loss of more than 500 full-time jobs.
The employees were told the news Tuesday during a staff meeting.
“As with any project of this scope and one that impacts people, these are difficult decisions,” John Bryant, president and chief executive of Kellogg Company said in a statement. “We are very mindful of the impact these changes will have – particularly to our employees. As our employees and others would expect from Kellogg, we will help those who are impacted through their transitions.”
Just last month, the company announced that it was laying off 110 workers by January 2014.
Kellogg’s has been in London since 1924.
The cuts are part of an overall restructuring by Kellogg’s to streamline their operations by 2018.
Almost all traditional cereal makers are facing a decline in sales, as more Canadians choose breakfast meals such as shakes and cereal bars over pouring a bowl of cereal. As a result, the London plant has produced less of their 27 different varieties of cereal every year.
The company said it will also close its snacks plant in Charmhaven, Australia by late 2014. Efforts will then be diverted to expanding its cereal and snacks plant in Rayong, Thailand by 2015.
“We have a compelling business need to better align our assets with marketplace trends and customer requirements,” said Bryant.
Last month, food producer Heinz announced it was closing its tomato plant in Leamington, Ont., eliminating 740 full-time jobs. The shutdown will be phased over the next six to eight months and also affect up to 500 seasonal workers hired each year during the tomato-harvesting season. The Ontario government said the province will provide up to $200,000 to help the southwestern Ontario city identify and pursue new opportunities for growth.