Michigan-based Kellogg Co. is shuttering its distribution center in La Palma and cutting 280 jobs there, according to a Worker Adjustment and Retraining Notification the cereal and snack giant filed with the state Employment Development Department.
The move is part of plan Kellogg announced in February to adjust to consumers’ increased inclination to shop at “a wider variety of retail outlets and online.” It will no longer ship product directly to stores from its 39 distribution centers and instead deliver to supermarket chains’ warehouses.
“Moving to warehouse distribution will improve our efficiency by leveraging scale and technology that we and our customers already have,” Kellogg North America President Paul Norman said during an earnings call in February. “This means more full truckloads and it means better inventory management and by creating value jointly with our customers as we improve profitability and asset utilization for both of us, allowing us to invest more to grow our business together.”
Kellogg has a market value of about $25.8 billion, and leases 130,000 square feet of the 294,000-square-foot building on 183rd St., according to CoStar Group, Inc.
