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General Mills Cutting Up to 1300 Jobs Globally

7/26/2016
General Mills (GM) announces restructuring in its global supply chain, impacting its U.S., Brazil, and China operations.

The global food company has made a "tentative decision" to close its manufacturing facility in Vineland, New Jersey, and transfer production to other U.S. facilities to eliminate excess soup capacity in its North America supply chain. The facility in Vineland manufactures GM's Progresso soup brand and has been operated by General Mills since 2001. 

The decision is subject to negotiation with union officials, but if the decision becomes final the closure will impact approximately 370 employees. GM expects the action to be completed by the first quarter of fiscal 2018.

The company has also reached a tentative agreement to sell its Martel, Ohio, facility to Mennel Milling Company, pending negotiations with union officials. The Martel plant manufactures dry baking mix products and has been operated by GM since 2001. 

A closure would impact approximately 180 employees. If the decision becomes final, the sale is expected to close by the second quarter of fiscal 2017. At that time Mennel would act as a supplier to GM.
In China, GM will exit the fruit snacks business. The company will stop producing Trix products at its Nanjing, China, facility during the first quarter of fiscal 2017. General Mills will continue to make Bugles snacks in Nanjing. The decision will result in the loss of approximately 300 positions in China.

In Brazil, GM will close the Marlia manufacturing facility and distribution center and transfer production out of the So Bernardo do Campo facility to other GM facilities in Brazil. GM is negotiating an exit package for the approximately 420 impacted employees with union officials for both locations. The Marlia closure and the transfer of production out of So Bernardo do Campo will be completed in the first quarter of fiscal 2017. 
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