General Mills layoffs are continuing, and the pain is being felt particularly sharply in the city of Lodi, California, where the latest round of pink slips may cost the city as many as 1,200 jobs, KCRA is reporting .
Nationwide, General Mills intends to issue about 700 layoffs in its international division, as the cereal and processed foods manufacturer contends with declining sales. About 430 of those layoffs will come to Lodi, where a General Mills processing plant is slated to be closed by the end of the year. But the true impact of those layoffs will extend beyond just the General Mills factory, says Lodi Vice Mayor Mark Chandler.
“It’s certainly going to be a negative impact on our employment situation in Lodi, with this many jobs and all of the jobs that surround it, like trucking and restaurants.”
In fact, once the General Mills factory in Lodi closes, the city will likely lose closer to 1,200 jobs, once the trucking, suppliers, and other ancillary businesses that rely on the factory are considered. Plus, there’s the fact that there will be less money spent in the community after all of those jobs — many of which pay upwards of $24 per hour — are gone.
General Mills, like other big-name manufacturers of processed foods, such as Campbell Soup and Kellogg, are facing declining sales in recent years. Minneapolis-based General Mills’ net sales rose only one percent last year, according to MSN Money , as Americans’ tastes change in favor of fresher options, as opposed to processed foods, as well as due to niche suppliers gaining market share.
Back in Lodi, those changing tastes are putting the pinch in a part of the country that can hardly deal with any more bad news. Fortunately, Lodi knew years ago that the General Mills factory would be closing, and they’ve put plans into place to try to mitigate at least some of the damage. Chandler says that the city is already looking for a new tenant for the old site.
“The city is working on a committee with General Mills and a real estate search firm to find the next big company that wants to take over.”
Lod Chamber of Commerce president Pat Patrick is also confident that Lodi can and will bounce back.
“Sure, it is a huge blow to the local economy, but it’s not something that will cripple Lodi. And it’s not something that we can’t come back from.”
General Mills hopes this round of layoffs will save the ailing company $45 million to $50 million.
[Image courtesy of: Shutterstock/ Ken Wolter ]
