General Mills (GIS) Discloses Additional Job Cuts

On September 18, 2014, General Mills, Inc. (NYSE: GIS) filed a Current Report on Form 8-K announcing several multi-year restructuring initiatives, including Project Catalyst, a restructuring plan designed to increase organizational effectiveness and reduce overhead expense. At that time, we were unable to make a determination of the estimated total costs or range of costs to be incurred in connection with Project Catalyst.

General Mills, Inc. is filing this Form 8-K/A to amend the Form 8-K filed on September 18, 2014 to update the disclosure concerning Project Catalyst. In connection with this initiative, the company expects to eliminate approximately 700 to 800 positions, primarily in the United States. The company will record total restructuring charges of approximately $135 to $160 million pre-tax, primarily reflecting one-time employee termination benefits, of which approximately $110 to $135 million will result in future cash expenditures. These restructuring actions are expected to be completed by the end of fiscal 2015. The company expects that these actions will generate annual cost savings of approximately $125 to $150 million, beginning in fiscal 2016. In fiscal 2015, the company expects that these actions and other efforts to reduce overhead costs will generate approximately $40 million of savings. The estimates included herein are separate from the estimates provided in connection with the Project Century North American supply chain restructuring plans that we previously announced.

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