General Mills signals layoffs in report that promises ‘transformative initiative’

Layoffs appear to be on the horizon at General Mills, though how many is uncertain.

The food giant plans a reorganization that’s expected to result in a $70 million charge during the fourth quarter — primarily for severance costs, according to a filing Tuesday with the U.S. Securities and Exchange Commission (SEC).

Golden Valley-based General Mills said in the filing that its “multi-year global transformation initiative” will include total charges of $130 million, though it’s not clear if the remaining $60 million in costs are severance related.

The company declined to comment directly on any layoffs.

In a statement late Tuesday, General Mills said that returning to growth — its “number one” priority — requires increased investments in its businesses. The new “transformation” plan supports that reinvestment, the company said.

“While this news represents hard choices, they are necessary to fund product innovation, create compelling consumer value and position General Mills for long-term success,” the statement said.

General Mills’ filing Tuesday is reminiscent of a 2021 SEC filing by the company. Back then, it announced a restructuring that would include charges of $170 million to $220 million, chiefly for severance payouts.

The day after that filing, General Mills announced 700 to 800 job cuts in U.S. and Canada, and up to 600 more in other international operations.

Judging from past restructurings, consultant and former General Mills Vice President Peter McDonald expects Tuesday’s announcement could mean 500 to 600 jobs cut in North America and potentially more overseas.

“That’s not based on any unique intel, just an informed read of past patterns,” McDonald wrote on social media Wednesday. “This is smaller than previous waves of restructuring, but still meaningful. And if you are one of the people impacted, it is hugely meaningful.”

General Mills, maker of everything from soup and cereal to frozen dough, in late March reported lackluster results for its latest quarter. Shoppers, pinched by the lingering effects of inflation, continued turning from name brands to store brands and other cheaper alternatives.

General Mills lowered its sales and earnings forecast along with its March earnings announcement.

The company also declared that it was looking for ways to cut $100 million in costs starting this summer, though it declined to offer specifics.