Kellogg Closing Roseville Sales Office
Kellogg Co. will be closing its Northern California sales office in Roseville by August 17th. A letter was received by the California Employment Development Department on May 30th confirming the layoffs in the form of a standard “WARN Act.” There will be 230 employees laid off when the sales office officially closes. In February, Kellogg announced that it was exiting the “Direct Store Delivery” network in the second quarter and transition its U.S. snacks operation to a warehouse model that is already in use at other locations. Kellogg stated in a February announcement:
Warehouse distribution is already utilized by 75 percent of Kellogg’s U.S. sales, including the Pringles, Frozen Foods and Morning Foods businesses. Moving completely to a warehouse distribution system offers a significant opportunity to accelerate growth.
The move allows Kellogg’s products to go to retailers’ warehouses, which enables Kellogg to shut its own distribution centers to downsize in other departments. Kellogg hopes to complete the transition by this year’s fourth quarter. The company also claims that it will provide severance, benefits, as well as retention packages for impacted employees to help ensure business continuity. Hopefully the Roseville employees are able to find a job in a timely manner after the office closes.