June 19, 2017 Comments Off on Kellogg Closing La Palma Distribution Facility Views: 1070 California News, Orange County

Kellogg Closing La Palma Distribution Facility

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Kellogg Co. plans to close a 130,000-square-foot distribution center at 14000 183rd St. in La Palma, CA next month. The company notified the state’s Employment Development Department that the action will result in 280 layoffs.

The Michigan-based cereal and snack giant is shifting from direct-store delivery centers to a warehouse model. Products are shipped to retailer’s warehouses, rather than directly to stores. The company already uses the model with the Pringles band, as well as the rest of its North American business.

Kellogg is closing 39 direct-store delivery distribution centers, mainly during the second and third quarters, as part of a larger restructuring aimed at improving profits. The move is expected to result in savings later in the year.

Read more at OC Register

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