Kellogg announces proposed reorganization plan for European business
In a regulatory filing, Kellogg announced a proposed reorganization plan for the European business designed to simplify the organization, increase organizational efficiency, and enhance key processes. The proposed changes are subject to consultation processes as appropriate, with employee representative groups in the region. The overall project is expected to be substantially completed by December 31, 2020. The project is expected to result in cumulative pretax charges of approximately $50M, including certain non-cash credits. Cash costs are expected to be approximately $57 million. The company currently anticipates employee-related costs totaling approximately $33M which will include severance and other termination benefits; and other costs totaling approximately $17M which will primarily consist of charges related to relocation, third party legal and consulting fees, and contract termination costs.