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Kellogg Reports Reorganization Plan For North America Supply Chain Network

Kellogg Company (K) reported a reorganization plan for its North America supply chain network. The plan involves shifting production of various products to optimal lines across the Americas network. No production facilities are anticipated to be closed as a result of the plan, the company noted. The overall project is expected to be substantially completed by early 2024, with related productivity improvements beginning in 2023.

Kellogg expects overall project to result in cumulative pretax charges of approximately $45 million. Cash costs are estimated to be approximately $25 million. Non-cash costs are projected to be approximately $20 million and primarily consist of accelerated depreciation and asset write-offs.

Kellogg currently expects employee-related costs totaling approximately $4 million, which will include severance and other termination benefits.

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