The cereal brand WK Kellogg Co. announced to workers in Omaha Tuesday morning it plans to scale back production in 2025 and close in 2026.Workers went home with pay Tuesday and will return to work Wednesday as the local union heads back to the bargaining table."It's a very, very early announcement so it gives us a little hope and opportunity to think that something could change," union president Kenneth Merritt said.Merritt said he's now working with the cereal brand and union officials in Washington D.C to save 550 jobs in the city. About 468 are union, the rest are non-union.Last October, Kellogg split into the cereal brand WK Kellogg Co. and the snack brand Kellanova.Tuesday's announcement in Omaha is part of a widespread plan to modernize the brand's supply chain, according to a news release."These actions will help transform our supply chain," said Gary Pilnick, CEO of WK Kellogg Co.The company will scale back production and keep a plant open in Memphis next year.WK Kellogg said it will also increase production and invest in new infrastructure, equipment and technology at its plants in Battle Creek, Michigan; Lancaster, Pennsylvania; and Belleville, Ontario. The company also plans to invest $390 million in new technology and infrastructure. It will also incur a one-time charge of $110 million in restructuring costs.KETV NewsWatch 7 confirmed the information with Dan Osborn, an independent candidate for U.S. Senate. Osborn is also the former union president.He said employees are upset with the decision to close the cereal plant, located near 96th and F streets."People have dedicated their entire lives to working here. People are proud of the name and what they've done here. So it's unfortunate it has to end this way," Osborn said.The company said its 2nd quarter net sales fell 3.9%, and is now modernizing its supply chain, which includes shifting production from older plants to other facilities.The company said that a total of 550 jobs will be lost. In a statement, Omaha Mayor Jean Stothert said closure was "quite a shock.""Kellogg’s had not communicated anything previously about the potential to leave Omaha, so this announcement came as quite a shock. I’m certainly disappointed that Kellogg’s would make such a significant announcement this way," Stothert said in a statement.Heath Mello, president and CEO of the Greater Omaha Chamber, also gave a statement on the closure.“Kellogg’s has been a valued member of the Omaha business community for decades and we will continue conversations with them about their future as an important Omaha employer. The Greater Omaha Chamber is dedicated to working with our partners and pursuing every alternative that will avoid closing the plant," Mello said.In 2021, the union voted to pass a new five-year contract after 11 weeks on strike.The agreement included a plant closing moratorium: No plant shutdowns through October 2026."After more than 75 years in Omaha, Kellogg’s will leave a big void. Our first concern will be the Kellogg’s employees, and assisting them transition to new employment as Kellogg’s prepares to reduce production next year and close in 2026," Stothert said.The new contract also included cost-of-living wage adjustments for all employees and the removal of the term "legacy employee." Click here for the latest headlines from KETV NewsWatch 7
OMAHA, Neb. —
The cereal brand WK Kellogg Co. announced to workers in Omaha Tuesday morning it plans to scale back production in 2025 and close in 2026.
Workers went home with pay Tuesday and will return to work Wednesday as the local union heads back to the bargaining table.
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"It's a very, very early announcement so it gives us a little hope and opportunity to think that something could change," union president Kenneth Merritt said.
Merritt said he's now working with the cereal brand and union officials in Washington D.C to save 550 jobs in the city. About 468 are union, the rest are non-union.
Last October, Kellogg split into the cereal brand WK Kellogg Co. and the snack brand Kellanova.
Tuesday's announcement in Omaha is part of a widespread plan to modernize the brand's supply chain, according to a news release.
"These actions will help transform our supply chain," said Gary Pilnick, CEO of WK Kellogg Co.
The company will scale back production and keep a plant open in Memphis next year.
WK Kellogg said it will also increase production and invest in new infrastructure, equipment and technology at its plants in Battle Creek, Michigan; Lancaster, Pennsylvania; and Belleville, Ontario. The company also plans to invest $390 million in new technology and infrastructure. It will also incur a one-time charge of $110 million in restructuring costs.
KETV NewsWatch 7 confirmed the information with Dan Osborn, an independent candidate for U.S. Senate. Osborn is also the former union president.
He said employees are upset with the decision to close the cereal plant, located near 96th and F streets.
"People have dedicated their entire lives to working here. People are proud of the name and what they've done here. So it's unfortunate it has to end this way," Osborn said.
The company said its 2nd quarter net sales fell 3.9%, and is now modernizing its supply chain, which includes shifting production from older plants to other facilities.
The company said that a total of 550 jobs will be lost.
In a statement, Omaha Mayor Jean Stothert said closure was "quite a shock."
"Kellogg’s had not communicated anything previously about the potential to leave Omaha, so this announcement came as quite a shock. I’m certainly disappointed that Kellogg’s would make such a significant announcement this way," Stothert said in a statement.
Heath Mello, president and CEO of the Greater Omaha Chamber, also gave a statement on the closure.
“Kellogg’s has been a valued member of the Omaha business community for decades and we will continue conversations with them about their future as an important Omaha employer. The Greater Omaha Chamber is dedicated to working with our partners and pursuing every alternative that will avoid closing the plant," Mello said.
In 2021, the union voted to pass a new five-year contract after 11 weeks on strike.
The agreement included a plant closing moratorium: No plant shutdowns through October 2026.
"After more than 75 years in Omaha, Kellogg’s will leave a big void. Our first concern will be the Kellogg’s employees, and assisting them transition to new employment as Kellogg’s prepares to reduce production next year and close in 2026," Stothert said.
The new contract also included cost-of-living wage adjustments for all employees and the removal of the term "legacy employee."
Click here for the latest headlines from KETV NewsWatch 7
