MINNEAPOLIS, MINNESOTA, U.S. — General Mills announced on May 22 that it is eliminating 850 positions globally as part of a productivity and cost savings plan designed to improve organizational effectiveness and focus on key growth strategies.
Plans also include asset-related costs of approximately $13 million pre-tax associated with the write-down of selected production equipment. The company will record total restructuring charges of approximately $109 million pre-tax, reflecting one-time employee separation expenses and the asset-related costs. Approximately $94 million of these restructuring costs will be recorded in the fourth quarter of fiscal 2012, which ends on May 27. The remaining costs will be recorded in fiscal 2013.
Savings from these restructuring actions will be reinvested to support the company’s future growth strategies and to accelerate innovation across General Mills’ global business platforms.
General Mills continues to target fiscal 2012 adjusted diluted earnings per share of $2.53 to $2.55 per share. This guidance excludes the fourth-quarter restructuring charge, mark-to-market valuation effects, and Yoplait integration costs.