WK Kellogg Co. is closing one U.S. cereal plant and downsizing another as part of a plan to consolidate its operations in newer facilities
WK Kellogg Co. is closing one U.S. cereal plant and downsizing another as part of a plan to consolidate its operations in newer facilities.
The company said Tuesday it will close its Omaha, Nebraska, plant by the end of 2026. It also plans to scale back production at its plant in Memphis, Tennessee, starting next year.
WK Kellogg said it will increase production and invest in new infrastructure, equipment and technology at its plants in Battle Creek, Michigan; Lancaster, Pennsylvania; and Belleville, Ontario. The company said it plans to invest $390 million in new technology and infrastructure and will incur a one-time charge of $110 million in restructuring costs.
Battle Creek-based WK Kellogg said the plan will result in a net loss of 550 jobs, a number that includes hirings at the plants that will increase production. The company didn’t immediately respond when asked Tuesday how many workers would lose their jobs in Omaha and Memphis.
In a statement, Omaha Mayor Jean Stothert said she didn't learn of the planned closure until Tuesday morning.
“I’m certainly disappointed that Kellogg’s would make such a significant announcement this way,” Stothert said. “After more than 75 years in Omaha, Kellogg’s will leave a big void.”
WK Kellogg’s Omaha plant was the epicenter of a strike against the company in 2021, when workers walked off the job for two months to protest a two-tier wage structure and other issues. At one point, Kellogg sued its union, saying striking workers were blocking entrances to the Omaha plant.
The strike ended in late 2021 when the company agreed to raises and other
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