Kelloggs is buying time. Stockholders will like this for now. They are making up the difference from declining sales with the downsizing/layoffs. It's will only work for about a year. Stockholders would rather see increasing sales. They want a growing company. This will eventually backfire on them. No way they will increase sales from now on. The only thing that could save them is if they can get the cereal side of company to increase in sales which is %75 of Kelloggs. I hope I helped some of you.
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Your right, they do have new warehouses to pack in and count as a FAKE sales. But at stores there cutting back on back stock or no back stock. So this should be interesting next quarter. One thing I am sure about is this will completely backfire on them. Unless they give the stuff away for free.
Just remember Kelloggs will be dumping Massive amounts of product into chain warehouses over the next 3 months. Our sales may look weak but deliveries to the chain warehouses will show short term spike in business. What happens in fall should be interesting. I see layoffs at production facilities going into holidays when "True" demand matches on hand warehouse supplies. Enjoy Christmas being laid off production workers.
There will be no more fat to cut anymore I look for Kellogg to be sold by the end of the yr