General Mills to cut about 850 jobs globally; restructuring moves set

MINNEAPOLIS, Tue May 22, 2012 – General Mills Inc. will cut about 850 jobs, or 2.4 percent of its workforce, and take other restructuring measures to support growth, the company said on Tuesday.

The company, which has been facing higher costs of raw materials, will record total restructuring charges of about $109 million pretax, including about $94 million in the fourth quarter ending on May 27.

The remaining costs will be recorded in fiscal 2013, General Mills said.

The maker of Progresso soups, Cheerios cereal and Green Giant vegetables said the job cuts would occur across the company and would largely affect administrative and support positions.

General Mills said in March that third-quarter net income had fallen to $391.5 million, or 58 cents per share, from $392.1 million, or 59 cents per share, a year earlier.

On Tuesday, General Mills said it was backing its earlier forecast of earnings between $2.53 and $2.55 a share for the year.

The company’s shares were down 1 cent at $38.54 on the New York Stock Exchange.