Kellogg to Cut 20% of Salaried Jobs

Kellogg Co. said it will fire about 20% of its salaried employees in a bid to cut costs and stem erosion of its dominant share of the nation’s cereal market. Kellogg, the world’s largest cereal maker, said it would cut 525 of its salaried positions and 240 temporary jobs in North America, yielding $105 million in annual savings starting next year. The cuts represent about 4% of Kellogg’s global work force. The Battle Creek, Mich.-based maker of Frosted Flakes and Rice Krispies said in September it was reviewing the work of its salaried employees and would probably make changes, but the cuts were deeper than some industry analysts had expected. Kellogg said it will take a pretax charge of $70 million in the quarter ending Dec. 31 to cover the job cuts. Kellogg shares fell 94 cents to close at $36.38 on the NYSE.