MINNEAPOLIS – General Mills, Inc. announced a restructuring plan that will result in a workforce reduction of 850 globally and cost approximately $109 million in restructuring charges. The company said approximately $94 million of the restructuring costs will be recorded in the fourth quarter of fiscal 2012, which ends on May 27. The remaining costs will be recorded in fiscal 2013.
General Mills did not specify which business units of the company may be most affected by the restructuring effort. The company noted the initiative is a “productivity and cost savings plan designed to improve organizational effectiveness and focus on key growth strategies.”
General Mills said it continues to target fiscal 2012 adjusted diluted earnings per share of $2.53 to $2.55 per share.
During the third quarter of fiscal 2012, which ended Feb. 26, General Mills earned $391.5 million, equal to 61c per share on the common stock, which compared with $392.1 million, equal to 61c per share, in the previous year’s third quarter.
Net sales for the quarter were $4,120 million, which compared with $3,646.2 million in the previous year’s third quarter.