In an effort to increase profitability, on the background of declining sales, General Mills will shut down two Pillsbury dough factories, thus eliminating a further 500 jobs, according to the Wall Street Journal.
General Mills said in news releases on Thursday it expects the latest layoffs—which include 400 jobs from its New Albany, Ind., plant and 100 in Midland, Ontario in Canada—will be completed next year. The decision on the New Albany plant is pending negotiations with a labor union. The company has operated the Midland plant since 1952, and the New Albany one since 1959.
In a recent announcement made by the company, concerning its financial results, second-quarter net sales for the Convenience Stores and Foodservice segment grew 4 percent to reach USD530 million. Yogurt, snacks, cereal and frozen breakfast items led sales performance in the quarter, while segment operating profit grew 13 percent to USD96 million.
Through the first half of 2015, Convenience Stores and Foodservice net sales grew 3 percent to USD1.00 billion. Net price realization and mix contributed 4 points of net sales growth, while pound volume reduced sales growth by 1 point. Six-month segment operating profit increased 15 percent to USD184 million.