Kellogg Closing Evansville Facility
Kellogg Co. (NYSE: K) has confirmed plans to close 39 distribution centers throughout the country, including its facility in Evansville. While specific numbers were not released, the company says each facility employs approximately 30 full-time workers.
Kellogg says the closures are due to its decision to transition from a direct store delivery model to a warehouse model already in use by part of the company’s North American business. In an email to Inside INdiana Business, the company says the move will help achieve its long-term goals, but is still a "difficult decision because of its impact on employees."
"As the distribution shifts from our network to our retailers’ networks, so too will the work. We’ve been actively engaged in conversations with some of our biggest retail partners who have expressed strong interest in hiring these employees for high-demand roles once the transition is complete," the company said. "As a result, we are optimistic that our employees will find similar employment once this transition is complete. As the affected employees work throughout the U.S., this change will not have a sizeable impact on any one community."
Kellogg says it is providing severance and benefits along with retention packages for impacted employees. A specific date for the closures was not released, however they are expected to begin in the second quarter and be complete by the fourth quarter.
Last August, Kellogg announced it was closing its manufacturing plant in Vigo County in a move that would impact 150 positions.