Kellogg's Memphis on Airways Boulevard is set to layoff employees and ask those who remain to change their schedules, effectively taking a pay cut.
According to what's called a "warn" letter sent to Mayor A C Wharton's office, Kellogg's is permanently laying off at least 70 employees at its Memphis cereal plant. In fact 33 have already been let go as of June.
Another 37 will work their last days sometime between Aug. 10-23, but that's not the only frightening aspect of this situation.
Kellogg's Memphis Warn Letter: http://content.foxtvmedia.com/whbq/kelloggswarnletter.pdf
FOX13 News has been in contact with one Kellogg's Memphis employee who claims that the company is also asking the remaining 200 employees to restructure their work weeks, and that will mean pay cuts for the hourly employees.
"Kellogg continually assesses the efficiency of our operations and manufacturing network," Kellogg Company spokesman Kris Charles said from Battle Creek, Mich., in an e-mail to FOX13 News.
"We announced in April that up to 70 hourly and salaried jobs would be eliminated, over several months, in Memphis. In June, 33 jobs were eliminated and up to 37 additional jobs are set to be eliminated in the coming weeks. These eliminations were made in areas where we have more capacity and resources than necessary to operate the plant. We do not have plans to close the Memphis facility."
In the letter sent to Mayor Wharton's office in April, a reduction in planned production is the blame.
Kellogg's said the layoffs were necessary after a reduction in planned production.
The company posted a profit in the second quarter which ended in June, but to do that it had to drastically reduce its forecast.