General Mills, Inc. (NYSE:GIS) floats another restructuring plan. As per the reports, the company is planning to cut around 675 to 725 jobs abroad so that it can invest a significant amount in the growth of international business.
The company had announced about cutting cost a short while ago, but it never stated that it would take the job cutting.
Insights On The Matter:
General Mills, based in Minneapolis area, employs around 43,000 employees across the globe. A recent regulatory filing of General Mills revealed that its restructuring related charges (post pretax) climbed from $57 million to $62 million. The company claims that its newly announced restructuring plan named “Project Compass” can save around $45 million to $50 million annually. The cost cutting includes around $25 million to $30 million for fiscal 2015.
It’s not the first time when it has announced job cutting. Back in 2012, it revealed that it was planning to set aside around 850 employees to cut down cost. However, In 2014, General Mills eliminated 1400 jobs, and in January 2015 announced that it would cast out around 500 jobs and close two plants.
A host of food companies in The United States, including General Mills, Inc. (NYSE:GIS) have posted below expected financial results lately, which has prompted them to try alternative ways to cut cost and set off the market pressure. Most of these companies have become victims of changing-consumer-taste, which has cost them significantly over the past few years.
Companies that offer packaged food are getting affected most as consumers have started preferring products that are natural and healthier for their bodies. General Mills, Inc. (NYSE:GIS), after looking at this changing scenario, has decided to focus more on emerging markets. In 2012, these markets contributed 25% to total revenues while, in 2014, they contributed 30%. It hopes to see these numbers going higher in the coming months.