General Mills is planning to halt operations at its cereal plant and yogurt factory in the US, a move that would cut down the company's workforce by 600.
The move is in line with the company's previously announced strategy to save $100m annually by fiscal year 2017. As part of that, the company is consolidating food manufacturing and eliminating unused production capacity.
The plant located in Lodi, California, manufactures cereals, while the plant in Methuen, Massachusetts manufactures yogurt.Operations at these plants will be shifted to other production facilities.
General Mills has been struggling for sometime as it reported 25% slump in net income for the first quarter of fiscal 2015. The company also witnessed 2% decline in net sales to $4.27bn and generated $690m in segment operating profit, down 15% compared to previous year.