Kellogg's Project K to bring global workforce cuts

Kellogg is set to reduce its global headcount by seven per cent and consolidate its processing operations over the next four years to reduce costs.

The company, which makes brands like Special K, Nutri-grain, Corn Flakes and Rice Bubbles, has dubbed its four-year efficiency and effectiveness program 'Project K'.

According to Kellogg, the project will generate a significant amount of savings, a majority of which will be invested in key strategic areas of focus for the business.

“We are excited by the potential and opportunities we see for growth in the categories in which we operate,” said John Bryant, Kellogg Company’s president and chief executive officer.

“As a result, we are making the difficult decisions necessary to address structural cost-saving opportunities which will enable us to increase investment in our core markets and in opportunities for future growth. These actions will set a foundation for our Sustainable Growth operating principle.”

The company said its third quarter revenue was flat compared to the previous corresponding quarter at $US3.7 billion.

Kellogg also said that its full-year earnings will be at the low end of previous estimates on the back of weaker than expected sales in certain food categories.