Kellogg's leaves Woodridge, cuts 258 area jobs
The Kellogg Co., maker of cereals and snack foods, said it will close its distribution center in Woodridge this summer and cut 258 area jobs.
The first layoffs are expected about July 29 and end around Aug. 11, according to a WARN report filed with the Illinois Department of Commerce and Economic Opportunity.
The jobs include 42 positions at the distribution center. The rest are sales and merchandising positions at offices in Elmhurst, Oak Brook and Chicago that are "associated with the facility for administrative purposes," said Kellogg's spokesman Kris Charles.
"While this is the right move for the company to achieve our long-term objectives, it was a difficult decision because of its impact on employees," Charles said.
The company said it aims to help the village find ways to fill the building, at 9020 Murphy Road, which it had leased. The availability of the building, which opened in 2015, is already posted on the village website.
"Woodridge places a high priority on fostering business growth within the community and we are always disappointed to see businesses leave, regardless of the circumstances," said Woodridge Mayor Gina Cunningham-Picek.
In February, Battle Creek, Michigan-based Kellogg's announced it would change its distribution system for its U.S. snacks business. The new model is expected to help reduce complexity and cost while increasing profitability. The company already has started using the new system for its Pringles brand, Charles said.
"As the distribution shifts from our network to our retailers' networks, so too will the work," Charles said. "We've been actively engaged in conversations with some of our biggest retail partners who have expressed strong interest in hiring these employees for high-demand roles once the transition is complete. As a result, we are optimistic that our employees will find similar employment once this transition is complete."
Cereal maker Kellogg's had $13 billion in sales for 2016 and more than 1,600 foods, including crackers and other snack foods under the brands Pringles, Keebler, Cheez-It, Famous Amos and others.