General Mills said today that it is eliminating 850 jobs worldwide in an effort to cut costs.
Golden Valley, Minn.-based General Mills said in a news release the move would cost $109 million, with most of that being recorded in the fourth quarter, which ends May 27.
General Mills said the move is “designed to improve organizational effectiveness and focus on key growth strategies.” About half of the cuts will come from its Twin Cities operations, largely from administrative and support positions, spokeswoman Kirstie Foster told the Minneapolis/St. Paul Business Journal.
The company employs about 35,000 workers, 5,500 of them in Minnesota.
General Mills also said it continues to expect that fiscal 2012 profits will come in at $2.53-$2.55 per share. That guidance excludes the fourth-quarter restructuring charge and Yoplait integration costs, the Journal reports.
For the third quarter that ended Feb. 26, General Mills’ sales were up 13 percent but profits were down slightly. Food companies like General Mills have been struggling to keep up with rising ingredient costs.