A company known for its breakfast foods and snacks will soon lay off an estimated 181 employees at an Atlanta-area distribution center.
Layoffs at the Kellogg Union City facility are scheduled to take place July 29, according to WARN data from the Georgia Department of Economic Development.
The layoffs come after the company's announcement earlier this year that it will fully transition to a warehouse distribution system, abandoning its "Direct Store Delivery" network, by the fourth quarter. The change means products will be shipped to its customers' warehouses instead of to stores.
In February, warehouse distribution was already used for 75 percent of Kellogg’s U.S. sales.
The layoffs impact employees from sales, merchandising and distribution centers. Inventory from Kellogg's distribution centers will be transferred to retailers' warehouses, and the centers will be closed.
The company reported in February that it will close 39 distribution centers by the fourth quarter. It's estimated that the closures could cut more than 1,100 jobs around the country.
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The company said it is providing severance and benefits for employees.
Changing shopping patterns — such as customers shopping in a wider variety of retail outlets and online — contributed to the decision to shift resources, according to a news release.
“While this is the right move for the company to achieve our long-term objectives, it was a difficult decision because of its impact on employees,” company spokeswoman Kris Charles said in an email.
The Kellogg Atlanta Distribution Center is located at 3605 Royal South Parkway.
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