WK Kellogg to close Omaha facility, cutting 451 jobs under Ferrero ownership

WK Kellogg Co. has filed a Worker Adjustment and Retraining Notification (WARN) notice with the Nebraska Department of Labor, confirming the permanent closure of its cereal manufacturing facility in Omaha. The plant, located at 9601 F Street, is scheduled to cease operations in August 2026, resulting in the loss of 451 positions across the site.

The reduction-in-force will be implemented in two phases. Approximately 100 employees will be affected between July 20 and August 3, followed by a second phase impacting 350 workers from August 4 to August 18. The filing details a wide range of affected roles, including 60 packing machine operators, 50 transitional employees, 28 process operators, and 27 general mechanics, alongside staff in sanitation, engineering, finance, human resources, and quality assurance. Both union-represented employees, covered by the Bakery, Confectionery, Tobacco Workers and Grain Millers Local 50-G, and non-represented staff will be impacted, with severance payments provided to those affected.

The closure is a key component of a supply-chain modernisation strategy announced by WK Kellogg in August 2024. At the time, then-chief executive Gary Pilnick cited aging infrastructure and inefficient building configurations as primary drivers for consolidating production. The company outlined an investment of between $450 million and $500 million in its manufacturing network, aiming to shift output to newer, more efficient facilities. WK Kellogg estimated one-time cash costs of approximately $110 million for the initiative, covering startup expenses, new lines, and severance.

This strategic shift occurs under new ownership and leadership. Ferrero, the Italian confectionery group known for Nutella, completed its acquisition of WK Kellogg in September 2025. The operational changes are now proceeding under chief operating officer Jean-Baptoul Santoul, who joined the company in February 2026. The closure also follows structural changes after WK Kellogg’s spinoff from Kellanova, which ended the production of rice for Rice Krispies Treats at the Omaha site and contributed to reduced output at other facilities.

Despite the shutdown, WK Kellogg has stated that the move is designed to maintain capacity to meet customer demand rather than eliminate specific brands from shelves. The company noted that production will be transferred to more agile technologies and efficient plants. This restructuring comes against a backdrop of declining cold cereal sales in the United States, which fell more than 13 per cent to 2.1 billion boxes in the 52 weeks to July 2025, as consumer preferences shift toward less processed, protein-heavy foods.