The uncertain economy, shifting consumer behavior, and rising geopolitical tensions have driven higher production costs, supply chain disruptions, and an overall scaleback in consumer spending.
To survive these tumultuous times and return to profitable organic growth, this popular cereal manufacturer is increasing investments in areas that promise strong returns, which led it to make a surprising decision.
General Mills is closing three manufacturing plants in Missouri, including its North America Foodservice pizza crust facility in St. Charles. It is also closing two North America Pet plants in Joplin, which it acquired in its $1.45 billion purchase of Whitebridge Pet Brands in 2024.
The closures aim to make the company’s supply chain more competitive, consolidate assets, and improve its cost structure. These moves are projected to cost the company around $82 million.
General Mills (GIS) didn’t disclose how many jobs would be affected, but the company had warned of upcoming layoffs as part of a multi-year global transformation plan. This initiative is slated for completion by the end of fiscal 2028, resulting in total charges of about $130 million, primarily from severance expenses.
Despite the high costs, the company expects to deliver $100 million in annual savings by fiscal 2026 through process efficiencies, new technologies, and updated operating models.
The closure of the three plants will result in $43 million in asset write-offs and $6 million in severance and other expenses in the second quarter of fiscal 2026.
General Mills makes major closures amid financial troubles
“We’re going to invest significantly in innovation and new product news, new brand campaigns and renovation across all of our top categories. And then we’re going to support this with industry-leading HMM cost savings and transformational benefits,” General Mills CEO Jeffrey Harmening said in an earnings call.
This isn’t the first time the cereal giant has announced major closures.
Related: 111-year-old grocery store chain announces major closures in 4 states
In March, General Mills closed its innovation hub, called G-Works, and halted all new investments from its venture capital arm, 301 Inc., which resulted in the layoff of 40 employees. Together, those units had invested in emerging food brands, but rising costs and inconsistent growth led the company to cut spending.
Still, General Mills continues to experience tumultuous declines, as it faces heavy expenses from its transformation.
In the first quarter of fiscal 2026, total net sales decreased 7%, with all North American categories posting negative growth except for Pet.
Food and beverage rivals face industry-wide struggles
General Mills is not alone in navigating these persistent challenges. Food and beverage rivals have faced significant headwinds, leading many to make similar cutbacks.
- In 2025, PepsiCo (PEP) partly closed its Detroit manufacturing plant, eliminating over 80 jobs, and shuttered two Frito-Lay facilities in New York and California, impacting nearly 770 workers. This follows last year’s closure of four bottling plants, resulting in over 400 total employee layoffs.
- Del Monte Foods closed multiple processing plants before filing for Chapter 11 bankruptcy in July 2025.
- Post Holdings plans to shut down two cereal manufacturing plants in Nevada and Ontario by the end of 2025, affecting around 300 employees.
For General Mills and its rivals, the ongoing closures highlight the immense pressures reshaping the food industry. As companies navigate rising costs, shifting demand, and declining profits, even major brands must make difficult cuts to achieve long-term financial stability.
According to Expert Market’s Food & Beverage Industry Report 2025, shifting consumer expectations have impacted nearly 80% of businesses, with affordability being the hardest expectation to meet, as noted by over a quarter of professionals.
Related: Kellogg making major change to Froot Loops, Frosted Flakes, more
