UPDATE 1-General Mills plans to shut down two plants, cut 500 jobs

Thu Jan 8, 2015 6:47pm EST
 
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Jan 8 (Reuters) - General Mills Inc said it plans to close down its plants in Midland, Ontario, Canada and New Albany, Indiana, cutting about 500 jobs, as part of announced efforts to reduce costs.

The company, which makes Cheerios cereal and Betty Crocker cake mixes, has embarked on a cost-saving program that aims to save more than $400 million in fiscal 2015.

The company also said in a regulatory filing on Thursday that it planned to reduce its refrigerated dough capacity.

General Mills said it had notified the New Albany union representatives of its decision to shutdown the plant. The shutdown, if approved by the union, will result in about 400 job cuts, the company said.

The company, which also makes Yoplait yogurt and Progresso soup, said shutdown of the Midland plant would result in 100 job cuts.

General Mills, which is struggling with weak sales and competition from private-label brands, said it expected restructuring charges of about $109 million from the closures.

The company's shares closed at $53.57 on the New York Stock Exchange.

(Reporting by Shailaja Sharma in Bengaluru; Editing by Sriraj Kalluvila)