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(Detroit Free Press)   Kellogg not feeling so grrreeat as they plan to lay off 2,100 workers over the next 3 years   (freep.com) divider line 45
    More: Sad, Kellogg's, global workforce, layoffs, frosted flakes, Eggo waffles, Battle Creek, excess capacity  
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627 clicks; posted to Business » on 04 Nov 2013 at 1:30 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



45 Comments   (+0 »)
   
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2013-11-04 01:37:55 PM  
Because the best thing to do in a contracting economy is focus on PROFITS.
 
2013-11-04 01:44:40 PM  

HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.


In farklib economic fantasyland, I suppose the prudent move for Kellogg would be to hire more people and increase pay, because the employees would then have so much more income to spend on Special K and Wheaties.
 
2013-11-04 01:45:42 PM  
Are you cereal?
 
2013-11-04 01:48:57 PM  

Debeo Summa Credo: HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.

In farklib economic fantasyland, I suppose the prudent move for Kellogg would be to hire more people and increase pay, because the employees would then have so much more income to spend on Special K and Wheaties.


How about the concentration of wealth apparently inevitable in Capitalism is bad for humanity? We cannot grow exponentially forever. This system is driving us to destroy our planet and there is nowhere else to go.
 
2013-11-04 01:49:42 PM  
FREE in every box! Get your own pink slip!
 
2013-11-04 02:08:42 PM  

Prophet of Loss: Debeo Summa Credo: HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.

In farklib economic fantasyland, I suppose the prudent move for Kellogg would be to hire more people and increase pay, because the employees would then have so much more income to spend on Special K and Wheaties.

How about the concentration of wealth apparently inevitable in Capitalism is bad for humanity? We cannot grow exponentially forever. This system is driving us to destroy our planet and there is nowhere else to go.


Silly liberals, always thinking that there is only one pie to split up when the real solution is to bake another pie and sell it.
 
2013-11-04 02:10:33 PM  

Prophet of Loss: Debeo Summa Credo: HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.

In farklib economic fantasyland, I suppose the prudent move for Kellogg would be to hire more people and increase pay, because the employees would then have so much more income to spend on Special K and Wheaties.

How about the concentration of wealth apparently inevitable in Capitalism is bad for humanity? We cannot grow exponentially forever. This system is driving us to destroy our planet and there is nowhere else to go.


And how, exactly, does this impact a specific company? If Kelloggs goes out of business by being unwilling to face what the actual demand is for their products, will that magically fix income inequality? Or will the net result be *more* people out of work?

Just because the GOP lets the inmates run the asylum doesn't mean the left should follow in their footsteps
 
2013-11-04 02:10:58 PM  

HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.


It probably is the best thing for Kellogg.
 
2013-11-04 02:38:24 PM  

Smeggy Smurf: Prophet of Loss: Debeo Summa Credo: HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.

In farklib economic fantasyland, I suppose the prudent move for Kellogg would be to hire more people and increase pay, because the employees would then have so much more income to spend on Special K and Wheaties.

How about the concentration of wealth apparently inevitable in Capitalism is bad for humanity? We cannot grow exponentially forever. This system is driving us to destroy our planet and there is nowhere else to go.

Silly liberals, always thinking that there is only one pie to split up when the real solution is to bake another pie and sell it.


Whose talking about pie? I thought we were talking about cereal.
 
2013-11-04 02:43:35 PM  

Debeo Summa Credo: Smeggy Smurf: Prophet of Loss: Debeo Summa Credo: HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.

In farklib economic fantasyland, I suppose the prudent move for Kellogg would be to hire more people and increase pay, because the employees would then have so much more income to spend on Special K and Wheaties.

How about the concentration of wealth apparently inevitable in Capitalism is bad for humanity? We cannot grow exponentially forever. This system is driving us to destroy our planet and there is nowhere else to go.

Silly liberals, always thinking that there is only one pie to split up when the real solution is to bake another pie and sell it.

Whose talking about pie? I thought we were talking about cereal.


Smeggy was just being super cereal.

24.media.tumblr.com
 
2013-11-04 02:51:39 PM  

stratagos: Prophet of Loss: Debeo Summa Credo: HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.

In farklib economic fantasyland, I suppose the prudent move for Kellogg would be to hire more people and increase pay, because the employees would then have so much more income to spend on Special K and Wheaties.

How about the concentration of wealth apparently inevitable in Capitalism is bad for humanity? We cannot grow exponentially forever. This system is driving us to destroy our planet and there is nowhere else to go.

And how, exactly, does this impact a specific company? If Kelloggs goes out of business by being unwilling to face what the actual demand is for their products, will that magically fix income inequality? Or will the net result be *more* people out of work?

Just because the GOP lets the inmates run the asylum doesn't mean the left should follow in their footsteps


Can you have a forest with a tree?
 
2013-11-04 02:53:14 PM  
Prophet of Loss:

Can you have a forest without a tree?
 
2013-11-04 02:56:16 PM  

Prophet of Loss: Prophet of Loss:

Can you have a forest without a tree?


The interests of forests and trees do not necessarily overlap.
 
2013-11-04 03:37:18 PM  

Prophet of Loss: Prophet of Loss:

Can you have a forest without a tree?


If you want to exchange koans, I can whip out Google and exchange platitudes that have little to do with the subject. How about addressing my point first.
 
2013-11-04 03:38:52 PM  

stratagos: Prophet of Loss: Prophet of Loss:

Can you have a forest without a tree?

If you want to exchange koans, I can whip out Google and exchange platitudes that have little to do with the subject. How about addressing my point first.


Gladly - but first, what is the sound of one clap dripping?
 
2013-11-04 03:42:52 PM  

jso2897: stratagos: Prophet of Loss: Prophet of Loss:

Can you have a forest without a tree?

If you want to exchange koans, I can whip out Google and exchange platitudes that have little to do with the subject. How about addressing my point first.

Gladly - but first, what is the sound of one clap dripping?


Isn't that something for the Zumba Madame thread?
 
2013-11-04 03:48:22 PM  
They should just slap "Gluten Free!" on every box and their sales would double.  They can settle out of court with the 0.01% of people buying gluten-free foods who actually have Celiac's disease.  The other 99.99% read a book on wheatbelly or think they're somehow being healthy.
 
2013-11-04 04:22:48 PM  
Time buy stock in General Mills.

/2100 new customers coming your way.
//at least for a quarter, then their unemployment runs out and food stamps have been gutted.
 
2013-11-04 04:26:54 PM  

syrynxx: They should just slap "Gluten Free!" on every box and their sales would double.  They can settle out of court with the 0.01% of people buying gluten-free foods who actually have Celiac's disease.  The other 99.99% read a book on wheatbelly or think they're somehow being healthy.


When I was a little girl, I'd gather up empty coke bottles from the gas station in town, to return for the deposit.

I'd save up the nickels until I had enough for a 45 record. There was a record store down the street from the church, and I'd sneak off after services while the grown folk were talking.

Some nights, when I was good and finished all my chores, daddy would let me us the phonograph in the living room.

I tell ya, that wheat belly sure could play the blues.
 
2013-11-04 04:48:17 PM  
i.imgur.com
 
2013-11-04 05:07:29 PM  

Prophet of Loss: How about the concentration of wealth apparently inevitable in Capitalism is bad for humanity? We cannot grow exponentially forever. This system is driving us to destroy our planet and there is nowhere else to go.

Just needed to be said again.

 
2013-11-04 05:07:41 PM  

mcmnky: When I was a little girl, I'd gather up empty coke bottles from the gas station in town, to return for the deposit.

I'd save up the nickels until I had enough for a 45 record.


Was it a Juice Newton record?
 
2013-11-04 06:20:42 PM  
Oh, global workforce.  So no American jobs were lost?  got it.
 
2013-11-04 06:46:29 PM  

Debeo Summa Credo: HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.

In farklib economic fantasyland, I suppose the prudent move for Kellogg would be to hire more people and increase pay, because the employees would then have so much more income to spend on Special K and Wheaties.


Hey, you did it. You made my ignore list after coming SOOOOO close so many times.

Your robotically and ignorantly professed hate finally put you in with TPOC.

Fine company to be sure.
 
2013-11-04 06:58:42 PM  
If the Kellogg company knew how much stoners love breakfast cereals and Pringles, they'd be quite active in supporting legalizing the decriminalization of marijuana nationwide.
 
2013-11-04 07:29:52 PM  
They're going to lay off 2,100 workers over the next 3 years?!

i651.photobucket.com

They need to lay off 2,100 workers EVERY YEAR over the next 3 years!!

// I need my stock to rise a quarter of a point.
 
2013-11-04 07:55:03 PM  
CEO got a raise last year.
 
2013-11-04 08:19:53 PM  
Maybe Kellogg's wouldn't be in such a mess if they actually promoted or lowered the cost of their 'healthier' cereals and other products (excluding Kashi stuff). What do I always see on sale or on the endcaps? Boxes of Fruit Loops, Apple Jacks, and Frosted Flakes. It's old, boring, and a box full of sugar. Kellogg's has some good, somewhat-more-nutritious cereals but I'm not paying $6 for a 12 oz. box of it...so my money goes to General Mills or whoever makes the store brand shredded wheat.
 
2013-11-04 08:37:32 PM  
I care: Why?
 
2013-11-04 09:44:34 PM  

HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.


 I thought they were a US based company.
 
2013-11-04 09:47:30 PM  

MBZ321: Maybe Kellogg's wouldn't be in such a mess if they actually promoted or lowered the cost of their 'healthier' cereals and other products (excluding Kashi stuff). What do I always see on sale or on the endcaps? Boxes of Fruit Loops, Apple Jacks, and Frosted Flakes. It's old, boring, and a box full of sugar. Kellogg's has some good, somewhat-more-nutritious cereals but I'm not paying $6 for a 12 oz. box of it...so my money goes to General Mills or whoever makes the store brand shredded wheat.


complete agreement here. I only buy cereal when it's on sale, and always high fiber. I've recently taken to buying 'all bran' from my local bulk store because it's much cheaper. And I don't know why this has just occured to me but as I was making granola at work this week it occurred to me I should use that recipe at home. It's fantastic, healthy, and easy. When I mentioned it to the chef, he agreed wide-eyed. 'I don't even like granola and I can't help loving this one'.

Granola:

3 cups oats
1 cup pistachios (lightly chopped)
1 cup sliced almonds
1/4 cup brown sugar
Scant teaspoon salt

Mix.
In separate container:

1/4 cup oil (not olive, very light tasting... Canola, sunflower, etc)
1/4 cup maple syrup

Mix.

Toss the liquid in with the dry and place on baking sheet lined with parchment. Bake approx 1.5-2 hours @ 250° or until done (taste test should tell you) mixing a bit every 30 mins or so.

After cooled, toss in 1 cup raisins.

Better than any granola I've ever bought. Try it yourself.

(Modified from an Alton Brown recipe I think)
 
2013-11-04 09:52:23 PM  

jst3p: HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.

 I thought they were a US based company.


"Slowly expanding" would diminish whatever nonsensical point he was trying to make.

Remember: when discussing cutbacks or austerity we're in a "weak economy" or dealing with the worst recession of our lives or "crippling" unemployment. When discussing the Obama administration's economic performance, were in the fourth consecutive year of growth and an expanding economy.
 
2013-11-04 10:24:23 PM  

HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.


To put it more succinctly--and more factually:

Because the best thing a profitable company can do when faced with lower-than-expected profits is pay their investor bill first.

There are untapped markets out there for any company, and there are existing customers to keep. A privately owned company will use a portion of their profits, especially in times of weak growth, to focus on keeping and gaining market share. A publicly traded company will almost always pay their investors first, even to the detriment of long term health. We are being short-termed to death. Of course, this specific decision may in fact be in Kellogg's long-term best interest--it's a small number of people over 3 years--but it's similar in scope if not scale to what many large companies do best: put quarterly profits ahead of long-term strength.
 
2013-11-04 10:30:45 PM  

inclemency: Debeo Summa Credo: HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.

In farklib economic fantasyland, I suppose the prudent move for Kellogg would be to hire more people and increase pay, because the employees would then have so much more income to spend on Special K and Wheaties.

Hey, you did it. You made my ignore list after coming SOOOOO close so many times.

Your robotically and ignorantly professed hate finally put you in with TPOC.

Fine company to be sure.


I've been close so many times, but have always changed my mind. I at least think he's honest and does, in fact, believe most of what he says. Even if he's just a very consistent troll, though, he's just saying what most conservative economics GEDs think.

It's tempting to believe that he's just QA's econ alt, but since QA is well known for having not just one or two, but three full gimmicks/quirks and still posts under his own login for unrelated things, I doubt he has any alts. They have pretty similar styles, though. Angry, condescending, old man rants, along with the "LOL! This is what Fark _____ actually believe!" bit they're both so fond of.
 
2013-11-04 10:33:23 PM  
MBZ321: Kellogg's has some good, somewhat-more-nutritious cereals but I'm not paying $6 for a 12 oz. box of it...so my money goes to General Mills or whoever makes the store brand shredded wheat.

This.
Hey, Kellogg's, quit being such a stockholder pussy and price your goods for what smart people with money will pay.
People with money might pay $6 for a box of cereal, but smart people won't pick it up if it has only 12 oz. in it or whatever.
 
2013-11-04 10:38:30 PM  
Those executive bonus's have to come from somewhere.
 
2013-11-05 12:08:20 AM  
FTFA: The reduction effort, dubbed Project K, will produce cash savings expected to reach an annual run-rate of between $425 million and $475 million in 2018. The program's expected after-tax rate of return is about 30%. Alistair Hirst, the company's senior vice president of its global supply chain, told analysts today that the program will result in consolidation of plants and production lines.

It is "not an exercise in headcount reduction," he said, and the move is difficult but "necessary for the long-term health of the business."


I wonder how many millions of dollars Mr. Alistair and the other executives of Kellogg will receive in bonuses as a result of this "not an exercise in headcount reduction"?
 
2013-11-05 12:13:42 AM  
FTFA: Kellogg did not provide details on how Battle Creek workers would be affected by the program, but CEO John Bryant said that the company remains committed to the local community. He cited recent investments in its research and development facility, donations to the United Way of the Battle Creek and Kalamazoo Region and the local impact of the company's Pringles acquisition.

Normally, when a company doesn't provide details on something like this, and instead reminds the press of all the wonderful things they're doing for the local community, it's going to hit the local workforce pretty hard. But, that's okay. At least the corporate officers and upper management will be able to sleep well knowing that they "made the tough choices" necessary for the survival of the company... and their own golden parachutes.
 
2013-11-05 12:18:58 AM  

sparkeyjames: Those executive bonus's have to come from somewhere.


QFT
 
2013-11-05 01:08:22 AM  
faroutshirts.com
 
2013-11-05 03:40:59 AM  

sure haven't: Prophet of Loss: How about the concentration of wealth apparently inevitable in Capitalism is bad for humanity? We cannot grow exponentially forever. This system is driving us to destroy our planet and there is nowhere else to go.

Just needed to be said again.


Why? It wasn't any less stupid than the last time it was posted. Capitalist systems neither make the concentration of wealth inevitable, nor require infinite, exponential growth. Just as non-capitalists systems neither prevent the concentration of wealth nor do they encourage less-than-maximal production.
 
2013-11-05 06:59:24 AM  

TopoGigo: HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.

To put it more succinctly--and more factually:

Because the best thing a profitable company can do when faced with lower-than-expected profits is pay their investor bill first.

There are untapped markets out there for any company, and there are existing customers to keep. A privately owned company will use a portion of their profits, especially in times of weak growth, to focus on keeping and gaining market share. A publicly traded company will almost always pay their investors first, even to the detriment of long term health. We are being short-termed to death. Of course, this specific decision may in fact be in Kellogg's long-term best interest--it's a small number of people over 3 years--but it's similar in scope if not scale to what many large companies do best: put quarterly profits ahead of long-term strength.


You are espousing a naive and cliched view that conflicts with reality. While short term earnings management is an issue for management efficiency, transparency, and corp governance, it isn't causing us to be "short termed to death".

Management makes strategic decisions based on a long term view, whether that be expansion or contraction. In fact, layoffs frequently require immediate restructuring charges that hurt profitability in the short term, but are expected to be beneficial in the long term.

If Kellogg thought retaining these 2,100 employees was better for their long term profitability, they wouldn't be letting them go.
 
2013-11-05 07:06:25 AM  

TopoGigo: inclemency: Debeo Summa Credo: HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.

In farklib economic fantasyland, I suppose the prudent move for Kellogg would be to hire more people and increase pay, because the employees would then have so much more income to spend on Special K and Wheaties.

Hey, you did it. You made my ignore list after coming SOOOOO close so many times.

Your robotically and ignorantly professed hate finally put you in with TPOC.

Fine company to be sure.

I've been close so many times, but have always changed my mind. I at least think he's honest and does, in fact, believe most of what he says. Even if he's just a very consistent troll, though, he's just saying what most conservative economics GEDs think.

It's tempting to believe that he's just QA's econ alt, but since QA is well known for having not just one or two, but three full gimmicks/quirks and still posts under his own login for unrelated things, I doubt he has any alts. They have pretty similar styles, though. Angry, condescending, old man rants, along with the "LOL! This is what Fark _____ actually believe!" bit they're both so fond of.


"This is what farklibs actually believe" is used when a liberal post is so blatantly stupid that it isn't worthy of detailed rebuttal.

Sorry if it offends you if I respond to your friends condescendingly or dismissively. If you are honest with yourself you would probably agree that whichever comment I am responding to in that way is stupid.
 
2013-11-05 07:07:06 AM  

TopoGigo: HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.

To put it more succinctly--and more factually:

Because the best thing a profitable company can do when faced with lower-than-expected profits is pay their investor bill first.

There are untapped markets out there for any company, and there are existing customers to keep. A privately owned company will use a portion of their profits, especially in times of weak growth, to focus on keeping and gaining market share. A publicly traded company will almost always pay their investors first, even to the detriment of long term health. We are being short-termed to death. Of course, this specific decision may in fact be in Kellogg's long-term best interest--it's a small number of people over 3 years--but it's similar in scope if not scale to what many large companies do best: put quarterly profits ahead of long-term strength.


These tards worship corporations. WORSHIP. It would be nice if they cared about the health of their country half as much
 
2013-11-05 12:04:10 PM  

TopoGigo: HotIgneous Intruder: Because the best thing to do in a contracting economy is focus on PROFITS.

To put it more succinctly--and more factually:

Because the best thing a profitable company can do when faced with lower-than-expected profits is pay their investor bill first.

There are untapped markets out there for any company, and there are existing customers to keep. A privately owned company will use a portion of their profits, especially in times of weak growth, to focus on keeping and gaining market share. A publicly traded company will almost always pay their investors first, even to the detriment of long term health. We are being short-termed to death. Of course, this specific decision may in fact be in Kellogg's long-term best interest--it's a small number of people over 3 years--but it's similar in scope if not scale to what many large companies do best: put quarterly profits ahead of long-term strength.


It's good to know that we have someone here that is so knowledgeable about the cereal industry to give as a good analysis of this move.
 
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