Michigan-based Kellogg Co. is closing its distribution center in La Palma and eliminating 280 jobs there, according to a Worker Adjustment and Retraining Notification the cereal and snack giant filed with the state.
The move is part of a plan announced in February to adjust to consumers’ increased inclination to shop at “a wider variety of retail outlets and online.”
Kellogg will no longer ship products directly to stores from its 39 distribution centers, instead delivering 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 on 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 East 183rd St., according to CoStar Group Inc.
—Mediha DiMartino
