Kellogg announces reorganization of its North America supply chain, expects to book pretax charges of $45 million

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Kellogg Co.
K,
-0.03%
said Friday it is planning to reorganize its North American supply chain with the aim of driving increased productivity. The cereal company said it expects the project to be substantially completed by early 2024 and that no facilities will be closed. Instead, the company will shift production of certain products to optimal lines across its network. Kellogg is expecting to book pretax charges of about $45 million on the project, with cash costs expected to total about $25 million. Employee-related costs are expected to come to about $4 million, including severance and other termination benefits. It did not offer details on how many employees may be affected. Shares were slightly higher premarket and have gained 2% in the year to date, while the S&P 500
SPX,
-0.03%
has gained 20.8%.

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