I worked at Kellogg's for about 7 years in the field and have been a regular reader of these posts. I understand everything being mentioned. What bothers me the most is the fact Kellogg's is lying about the amount of workers losing their job. Easily about 1/3 of the company will be let go. There have been a few weak attempts for comment but to no avail. So it looks like they will get away with their lie. I feel they are lying about the total to keep share holders. Kellogg's doesn't want to scare them and give them the impression the company is worse off than they are reporting. Kellogg's had two options in my opinion to try before this DSD Armageddon. They could have taken the Kellogg's products off DSD (Special K Bars, Nutri Grain, Kashi, etc) and focus on the cookies and crackers. They could have trimmed the workforce a little bit but maintain most full time positions. The other option would have been to sell Keebler. They paid almost 4 billion for it in 2000 and I feel they could get around 7 billion today. Most could keep their jobs and Kellogg's would have billions of dollars and lose all the expense of operating Keebler. If I'm Nabisco, I would divide territories and hire former Keebler reps. They could push Keebler right out the door. Keebler was second to Nabisco and now it looks like they will fall behind Voortman for shelf space. The Warehouse Model may work for cereal and frozen foods. It will NOT work for products that have heavy DSD competition. My heart goes out to all of you going thru this. I wish you all the best and hope you succeed in your future endeavors.
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The shareholder would run for the door if they knew how incompetent this companies management really is. I have never worked for a more disorganized and badly run company. This move lands squarely on the upper management. They have completely failed its customers, employees, and shareholders. Any company that has had a business plan of shrinking share while raising prices has failed. This one will soon fail and be on the chopping block to be sold.
Because Project W was created to prepare for the transition to warehouse.
As Keebler we had a strong popular product line,and a efficient operation.The first two years kellogg left us alone,but then they revamped us into their "Kellogg snack division". Just one horrid new item after another,and everything they could do to demoralize their employees
If the stockholders actually knew had bad its going to get in the next 6 months,they would be screaming for some corporate terminations.
If Kelloggs Corp expects the shutdown of DSD to cure all its financial ills they are either naive or completely clueless.
ALL companies lie about how many people they lay off. The name of the game is keeping the herd calm while the farmer slaughters them while standing.
The government, media, and corporations act as one entity in this endeavor.
Yes, its that bad.
You woukd think K leadership woukd be screaming the layoff of 10k + employees.
Would help stock price.
PR woukd be bad.
Honestly I'm more irritated about the Project W rollout knowing she woukd shut down DSD within a year. Why waste all that time and money if she knew it was all going to be for nothing.
Unless she just wanted to prove her point and make DSD look bad.