Kellogg to close two Texas distribution centers

TEXAS – Kellogg, the cereal giant, is closing two distribution centers in Texas and laying off more than 400 workers, including 201 in Fort Worth, as part of a broader cost-cutting measure.

The Michigan-based maker of cereals, snacks and breakfast foods told the Texas Workforce Commission that it plans to close its distribution center in Fort Worth, laying off most workers between July 29, 2017 and Aug. 17, 2017.

A similar closure notice was sent for a distribution center in Houston, resulting in the layoffs of 220 workers there.

The company said in February 2017 that it was changing its business model, switching from what’s known as direct store delivery, or DSD, to a warehouse model.

The warehouse model already is used in 75 percent of Kellogg’s U.S. sales, including Pringles and frozen foods.