Kellogg announces closure of distribution centers

The company said the decision reflects a shift by shoppers toward buying groceries outside of grocery stores

Kellogg's
Courtesy: CBS News

WARREN, Ohio (WKBN) – Kellogg Company announced Wednesday it will close its distribution centers across the U.S. and that there would be layoffs.

The company said the decision reflects a shift by shoppers toward buying groceries outside of grocery stores.

Kellogg operates a distribution center in Warren inside the former Delphi building on North River Road.

Company spokesman Kris Charles released a statement on Thursday morning:

While this is the right move for the company to achieve our long-term objectives, it was a difficult decision because of its impact on employees. On average, our distribution centers employ approximately 30 full-time workers.

As the distribution shifts from our network to our retailers’ networks, so too will the work. We’ve been actively engaged in conversations with some of our biggest retail partners who have expressed strong interest in hiring these employees for high-demand roles once the transition is complete. As a result, we are optimistic that our employees will find similar employment once this transition is complete so the net impact is impossible to quantify. As the affected employees work throughout the U.S., this change will not have a sizeable impact on any one community.”

In all, 39 distribution centers are closing. The transition will be complete by the fourth quarter of 2017, according to a news release from the company.

“The consumer and retail landscape continues to change,” said John Bryant, Kellogg Company Chairman and CEO. “We have to change the way we reach and communicate with consumers. Because our customers’ and our own warehouse distribution systems have become more efficient and effective, we can now redeploy resources previously tied to DSD and direct them to the kinds of brand investments that drive greater demand with today’s consumers − ultimately growing our business and our retailers’ businesses.”

“While this is the right move for the future of the company, it was a difficult decision because of the impact on affected employees,” Bryant said. “We are doing everything we can to help our employees manage through this transition.”

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