Dive Brief:
- General Mills-Pillsbury is weighing the decision to close its New Albany plant by mid-2016, which could cost the area about 400 jobs.
- The plant has operated in New Albany for more than half a century, and it has consistently been one of the city's major employers during that time.
- Pat McLaughlin, president of the New Albany city council, calls the move "devastating," and Mayor Jeff Gahan says, "The loss is tragic."
Dive Insight:
Roger Miller, president of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, commented that he and his union were informed of the potential decision only 30 minutes before the corporate announcement was made to employees. Mayor Gahan hopes that city and state economic officials can meet with General Mills to find a strategy that can keep the plant open. However, General Mills also announced the closure of an Ontario plant, so the future seems bleak for the New Albany workers.
The announcement comes not long after General Mills quietly split its organic and frozen food units and merged them with other sections of the company. That reorganization was reportedly separate from other cost-cutting initiatives, including shutting down two factories and cutting about 600 jobs back in September.
The most recent announcement also includes cutting 700 to 800 jobs in Twin Cities. These cost-cutting efforts are part of the company's plan to reduce annual expenses by about $250 million as sales decrease.