Kellogg’s to close London plant in the new year, lay off 500 workers


LONDON, Ont. – The Kellogg’s plant in London, Ont., will close by the end of 2014, resulting in the loss of more than 500 full-time jobs.

The employees were told the news Tuesday during a staff meeting.

“As with any project of this scope and one that impacts people, these are difficult decisions,” John Bryant, president and chief executive of Kellogg Company said in a statement.

“We are very mindful of the impact these changes will have — particularly to our employees. As our employees and others would expect from Kellogg, we will help those who are impacted through their transitions.”

Just last month, the company announced that it was laying off 110 workers by January 2014.

Kellogg’s has been in London since 1924.

The cuts are part of an overall restructuring by Kellogg’s to streamline their operations by 2018.

Almost all traditional cereal makers are facing a declines in sales, as more Canadians choose breakfast meals such as shakes and cereal bars over pouring a bowl of cereal. As a result, the London plant has produced less of their 27 different varieties of cereal every year.

The company said it will also close its snacks plant in Charmhaven, Australia by late 2014. Efforts will then be diverted to expanding its cereal and snacks plant in Rayong, Thailand by 2015.

“We have a compelling business need to better align our assets with marketplace trends and customer requirements,” said Bryant.

Last month, food producer Heinz announced it was closing its tomato plant in Leamington, Ont., eliminating 740 full-time jobs.

The shutdown will be phased over the next six to eight months and also affect up to 500 seasonal workers hired each year during the tomato-harvesting season.

The Ontario government said the province will provide up to $200,000 to help the southwestern Ontario city identify and pursue new opportunities for growth.

Filed under:

Kellogg’s to close London plant in the new year, lay off 500 workers

  1. So the On. Liberal gov`t is providing 50 cents to every man woman and child in London to help them identify and pursue new opportunities for growth.

    A short time ago this same government provided 1 billion dollars to move some gas plants in order to win enough seats to form a minority gov`t, propped up by NDP`ers.

    Yeah, keep voting Liberal London. Everything is working out pretty good.

  2. I’m surprised it’s lasted as long as it has. Breakfast habits changed long ago, and eating the box was always more nutritious than the flakes. Old building, place smelled terrible…time marches on.

  3. Just so I have it right…..Being just about the lowest tax regime in the G20, and a dollar falling to an expected 88 cents isn’t working? Hmmm, we must have got that strategy wrong. So, what’s next Mr. Harper? Oh yes…..I remember now. More Free Trade. Whoopee!

    • Harper & Flaherty will soon be anouncing bus tickets from southwestern Ontario to Alberta as the next big undertaking for the EAP. That and special EI rules that say the Kellogs and Heinz staff must show that their job search is for work within a 2000 mile radius.

    • Fresh blather indeed. Did you read the article? People aren’t eating as much cereal anymore. You can’t blame either Harper or Wynne for that. Yet most posters here are trying to blame one or the other.

  4. Am I reading this correctly? Our Corn Flakes will be sourced from Thailand come 2015?

  5. People aren’t eating as much cereal anymore. Loading up on starch isn’t the “great breakfast” we were once told it was. Not to defend the fools running Ontario, but people’s eating habits are hardly their fault.

  6. I don’t eat cereal anyways, but I do feel for the people losing their jobs!

  7. Kellogg’s has failed its targets this year as it did not acheived its targets in london which resulted in closure of the region.