General Mills cutting 850 jobs, expects profitable 2012 [UPDATE]

Categories: Business
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General Mills' layoff announcement comes on the heels of a sluggish winter.
General Mills was the seventh most-profitable company in Minnesota last year, raking in over $1.5 billion.

But the company is still feeling pressure from Wall Street to "lower costs and boost efficiency," and as a result announced this morning that it plans to layoff 850 workers out of its worldwide workforce of about 35,000.

The company added that it still expects to post an adjusted fiscal 2012 profit of $2.53 to $2.55 per share.

The Wall Street Journal notes that "food makers industrywide have been under pressure as budget-conscious U.S. consumers push back against price increases aimed at offsetting rising commodity costs."

In March, General Mills reported that fiscal third-quarter earnings edged down as higher costs hurt profit margins and sales volume fell due to higher prices.

:: UPDATE ::

The Star Tribune reports that Twin Cities workers will be victims of about half of General Mills' 850 planned layoffs.

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Dmarie
Dmarie

I have had several friends who work for them. They will definitely be shipping jobs overseas. Most employees work from home as it is and arent required to come into the office except for a couple days a week. SAD how Americans are losing there income, but CEO's continue or retire with Millions OF dollars

anonymous
anonymous

I also know many who work there. I heard the same thing, jobs going overseas. So much for our "job creators".

CinBlueland
CinBlueland

 Sad, but a fact of the current economy. Rising fuel and corn prices have got to just be killing the bottom line, and when you're a public company you have to answer to shareholders. Those with enough shares will vote top brass out and replace with someone willing to make the cuts, and or they just dump the stock and you have less capitol to work with.

CinBlueland
CinBlueland

I'm sure the discussion over at the Strib will be something along the lines of union workforce sucking the profits out, and greedy CEOs shipping jobs overseas.

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