General Mills said on Tuesday it would record a charge of about $70 million in its current quarter, mainly reflecting severance expenses, as part of the Cheerios cereal maker’s restructuring efforts.
The company’s efforts, including “targeted organizational actions”, are expected to be completed by the end of its fiscal year 2028, it said in a regulatory filing, adding the total cost of the restructuring would be about $130 million (C$179.6 million).
“While this news represents hard choices, they are necessary to fund product innovation … and position General Mills for long-term success,” a company spokesperson told Reuters, when asked for further details on the restructuring plans.
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U.S. grains: Soybean futures set two-week high on US weather worry, soyoil rally
Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
The move comes as the company grapples with choppy demand for its salty snacks and pet food in North America amid fierce competition from private-label rivals. In March, the company cut its annual sales and profit forecasts.
Shares of the company have slumped more than 15 per cent so far this year.
Previously, the company had said that it was planning new initiatives targeting cost savings of at least $100 million in fiscal 2026.
— Reporting by Neil J Kanatt in Bengaluru
