As WK Kellogg Co. makes significant shifts in its manufacturing operations, employees at its Memphis, Tennessee, and Omaha, Nebraska, plants are facing job uncertainties. The company's plan to consolidate operations will involve closing the Omaha plant by the end of 2026 and scaling back production in Memphis beginning next year, ABC News reported.
These changes come despite Kellogg's reporting a net sales decrease of 4% to $672 million in the second quarter, with sales volumes dropping by 4.8%, according to the same report. The restructuring is part of a broader investment in newer facilities— Battle Creek, Michigan; Lancaster, Pennsylvania; and Belleville, Ontario—where the company will invest $390 million in new technology and infrastructure, aiming for increased production. However, as a result of the changes, a net loss of 550 jobs has been forecasted, raising concerns among the current workforce.
In Memphis, approximately 125 employees will be affected by the downsizing, as stated by the president of Local 252G, Rob Eafen. Eafen, in a statement obtained by WREG, emphasized the union's commitment to "press forward and stay united" in their fight to maintain standard-setting wages and benefits. This sentiment is reflected across the plant in Omaha, where the plant's closure will impact a still-undisclosed number of workers.
Memphis Mayor Paul Young, in a statement procured by Action News 5, expressed personal concern over the job reductions, emphasizing efforts to create a stronger Memphis with more job opportunities that agree with residents' skills and schedules. In contrast, Omaha Mayor Jean Stothert was caught off guard by the announcement, lamenting the forthcoming absence of Kellogg's from a city it had been part of for over seven decades.
Kellogg's has outlined several measures to support affected employees, including offering severance and benefits, Employee Assistance Programs, and future resources like job fairs and resume writing services, according to reports from WREG. This level of support comes on the heels of a 2021 strike at the Kellogg's plant, where workers demanded fair wages and benefits, which was eventually resolved following an 11-week standoff.
