'Quite a shock': Omaha Kellogg’s plant to close by end of 2026 in ‘huge hit’ to employees (2024)

Hundreds of people will lose their jobs as Kellogg’s announced plans to close a manufacturing plant in Omaha by the end of 2026.

The company, WK Kellogg Co., said Tuesday that a “phased reduction” in manufacturing will begin in late 2025 with a full closure expected “toward the end of 2026.” Employees were informed of the news during an early-morning meeting Tuesday.

The closure comes as part of an effort from Kellogg’s to “consolidate its manufacturing footprint,” according to a press release. Production will be increased at facilities in Michigan, Pennsylvania and Ontario, while production will be scaled back at the Memphis, Tennessee, plant.

Only the Omaha plant will see a full closure in this round of “production shifts.” The plant has been in operation for more than 80 years — it opened its doors in 1942 as the second Kellogg’s manufacturing plant in the U.S., according to the Nebraska Manufacturing Advisory Council.

“Actions that impact our people and the communities where we operate are challenging and are made with thoughtful consideration,” Kellogg’s CEO and Chairman Gary Pilnick said in a statement. “We recognize and appreciate the tremendous contributions of our teams in Omaha and Memphis, and we are committed to providing them support throughout this transition.”

Omaha Mayor Jean Stothert said in a statement that her office was notified of the closing decision at 7:42 a.m. Tuesday through an email.

“Kellogg’s had not communicated anything previously about the potential to leave Omaha, so this announcement came as quite a shock,” she said. “I’m certainly disappointed that Kellogg’s would make such a significant announcement this way.”

Employees lined up on the west side of the sprawling facility near 96th and F Streets at about 7 a.m. on the unseasonably cool Tuesday morning. The plant was closed on Monday, and employees were notified on Monday evening about the Tuesday meeting.

By 7:45 a.m., hundreds of cars began to exit the parking lot. An employee said they were given the rest of the day off with pay, and production was set to resume Wednesday morning. Union leaders are expected to make a statement on Wednesday after they gather additional information about the closure.

About 500 union jobs and 100 non-union managerial roles will be affected by the closure, according to Dan Osborn, the former leader of the Bakery, Confectionary, Tobacco Workers and Grain Millers Local 50-G Union. Osborn, who worked at Kellogg’s for nearly 20 years, has since left the company but remains connected with union leaders.

“They’re extremely upset,” Osborn, now a U.S. Senate candidate, said of the Kellogg’s workers. “A lot of these people have dedicated their entire lives to working here. People are proud of the name and what they’ve done here.”

“It’s unfortunate that it has to end this way,” Osborn said.

Unionized workers at Kellogg’s ratified a contract that included protections against plant shutdowns after an 11-week strike in 2021. The contract specified there were to be no cereal production plant shutdowns through October 2026, which appears to be in line with the timeline for closure the company laid out.

Members of the Omaha City Council expressed concern about the impact the closure would have on Omaha’s economy and the individual employees.

“This is really going to be a huge hit to the economy here in Omaha,” Omaha City Council member Juanita Johnson said.

Omaha City Council member Danny Begley said he would “support anything to keep Kellogg’s here.”

“I don’t know why they’re closing this plant,” Begley said. “It’s American jobs. It’s Omaha jobs. It’s great for the economy. I just haven’t had enough details.”