Reuters
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(Reuters) -General Mills said on Tuesday it would record a charge of about $70 million in its current quarter, mainly reflecting severance expenses, as part of the Cheerios cereal maker's restructuring efforts.
The company's efforts, including "targeted organizational actions", are expected to be completed by the end of its fiscal year 2028, it said in a regulatory filing, adding the total cost of the restructuring would be about $130 million.
"While this news represents hard choices, they are necessary to fund product innovation ... and position General Mills for long-term success," a company spokesperson told Reuters, when asked for further details on the restructuring plans.
The move comes as the company grapples with choppy demand for its salty snacks and pet food in North America amid fierce competition from private-label rivals. In March, the company cut its annual sales and profit forecasts.
Shares of the company have slumped more than 15% so far this year.
Previously, the company had said that it was planning new initiatives targeting cost savings of at least $100 million in fiscal 2026.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Mohammed Safi Shamsi)
