Kelloggs, the No. 2 food and beverage company in the world, has decided to slash about $3 billion in U,S.
Kellogg spokesman Mike Wigler said in a statement to ESPN Clic that the company has been cutting about 500 jobs, and those cuts are expected to be made “over the coming months.”
The company plans to eliminate about 2,600 jobs by the end of the year, Wiglers statement said.
Kellogs annual U.K. sales rose 9% in the first quarter of 2018, to $15.5 billion, and its global sales increased 13%.
The company said that it has invested in “the right places and with the right people to help grow our businesses and our brand.”
The decision to make those cuts was based on the company’s ability to make “the necessary investments” in its workforce, Wriglers statement read.
“We are working hard to bring those investments in,” Wigels statement said, noting that the layoffs will include “employees at our global headquarters in Minneapolis and Atlanta, as well as some of our global service and manufacturing operations.”
The company also said that “the company’s board of directors has approved the company to make certain investments in the U.M. and the UAW’s local communities.
We will be making these investments publicly in the coming weeks.”
The UAW said in May that it would begin negotiating with the company, which has been a major employer in the United States for more than 50 years, to take advantage of the increased number of employees at its global headquarters.
“I am pleased that Kellogg has made the right decision,” UAW President Karen Lewis said at the time.
“We will continue to work together with Kellogg to bring the most sustainable, sustainable companies to our communities.”