Kellogg Company has informed the Tennessee Department of Labor and Workforce that it plans to permanently close a facility in northeast Memphis, affecting 172 workers.
The facility at 1751 Shelby Oaks Drive will close July 29, 2017, according to the WARN notice filed with the state department of labor.
The company says it notified the department’s dislocated worker unit on May 26, 2017.
Statement from Kellogg Company:
“In February, Kellogg announced it will begin to exit its Direct Store Delivery (DSD) network in the second quarter, transitioning the DSD-distributed portion of the company’s U.S. Snacks business to the warehouse model already used by Pringles and the rest of its North American business. The new model will be transformational for Kellogg, reducing complexity and cost structure while driving growth and profitability for the company and its retail partners.
While this is the right move for the company to achieve our long-term objectives, it was a difficult decision because of its impact on employees.
As the distribution shifts from our network to our retailers’ networks, so too will the work. We’ve been actively engaged in conversations with some of our biggest retail partners who have expressed strong interest in hiring these employees for high-demand roles once the transition is complete. As a result, we are optimistic that our employees will find similar employment once this transition is complete.” – Kris Charles, a company spokesperson
