General Mills: announces cost savings plan

Minneapolis / MN. (gm) General Mills Inc. announced a productivity and cost savings plan designed to improve organizational effectiveness and focus on key growth strategies. The plan includes organizational changes that strengthen business alignment, and actions to accelerate administrative efficiencies across the company. In connection with this initiative, the company expects to eliminate approximately 850 positions globally. Plans also include asset-related costs of approximately 13 million USD pre-tax associated with the write-down of selected production equipment. The company will record total restructuring charges of approximately 109 million USD pre-tax, reflecting one-time employee separation expenses and the asset-related costs. Approximately 94 million USD of these restructuring costs will be recorded in the fourth quarter of fiscal 2012, which ends on May 27, 2012. The remaining costs will be recorded in fiscal 2013.