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Kellogg Shutters Distribution Centers, Lays Off Workers

Kellogg Shutters Distribution Centers, Lays Off Workers

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It has been cutting costs as sales decline amid changing consumer trends. Kellogg is closing distribution centers around the nation, laying off more than 1,000 workers. FILE - In a Wednesday, July 18, 2012, file photo, Kellogg's cereals are on display at a Pittsburgh grocery market. The company is following through on a prior decision to shift to a warehouse system.

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Earlier this year, Kellogg said it would close nearly 40 distribution centers and use a warehouse system. It said it would be ending direct delivery of products to supermarkets and big-box retailers and instead ship those products to warehouses before they move to retailers' distribution centers. That's a system the company already was using for the majority of its products.

Facilities in Charlotte and Greensboro, North Carolina, will also close, affecting 500 workers. Other closings include centers in Houston and Fort Worth, Texas, affecting 420 workers. It will close a center in Sharonville, Ohio, and lay off nearly 250 employees. The Battle Creek, Michigan-based company will shut down a distribution center in Memphis and lay off 172 workers.

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