General Mills will lay off more than 600 workers as it shuts down factories in the Chicago area and Joplin, Mo., bringing to six the number of plant closings the company has announced in the past year.
Between blue-collar layoffs across the country and several hundred white-collar job cuts in the Twin Cities, General Mills has disclosed plans to shed about 2,500 jobs. The Golden Valley-based company, like other packaged food makers, is grappling with weak sales.
General Mills said Thursday it will cut 500 jobs by closing its 56-year-old West Chicago plant, which makes cereal, Hamburger Helper and Bugles salty snacks. Cereal, General Mills' largest business, has been stagnant, and the venerable Hamburger Helper brand has seen sales sag.
The plant in Joplin employs 120 and makes snacks under the Annie's brand. Annie's bought the Joplin plant from Safeway in early 2014, just months before General Mills bought Annie's for $820 million.
General Mills, like many packaged food companies, has struggled as consumers have begun gravitating away from processed foods and changing their eating habits. The result is rounds of cost-cutting.
"You are seeing companies across the consumer products landscape take a hard look across their cost structure," said Erin Lash, a stock analyst at Morningstar Inc.
But proceeds from some cuts at General Mills and other companies should help boost growth in promising brands, she said.
"We think the savings will be partly used to fund future brand investments, which are essential given the competitive nature of the [packaged food] space," she said.