Kellogg to close Houston distribution center, lay off 220 people

Kellogg Co. is closing its Houston distribution center and laying off 220 employees, according to documents released Tuesday by the Texas Workforce Commission.

An additional 201 people are being laid off from a distribution center in Fort Worth.

These layoffs stem from an announcement the company made in February that it will cease direct store delivery of its U.S. Snacks business and instead go to a warehouse model. This means it will ship snacks to retailers' warehouses instead of directly to their stores.

MORE: Americans are losing their appetite for cereal

Kellogg spokesman Kris Charles said the company is optimistic that its employees will find similar jobs with the retailers.

"As the distribution shifts from our network to our retailers' networks, so too will the work," he said in an email. "We've been actively engaged in conversations with some of our biggest retail partners who have expressed strong interest in hiring these employees for high-demand roles once the transition is complete."

Story continues below...



Keep going to see the biggest layoffs to hit Texas in 2017. less Kellogg Co. is closing its Houston distribution center and laying off 220 employees. This stems from a change in its snacks business announced in February.

Keep going to see the biggest layoffs to hit Texas in ... more Kellogg Co. is closing its Houston distribution center and laying off 220 employees. This stems from a change in its snacks business announced in February. Photo: Daniel Acker Photo: Daniel Acker Image 1 of / 50 Caption Close Kellogg to close Houston distribution center, lay off 220 people 1 / 50 Back to Gallery

The warehouse model is already used by Pringles and the rest of Kellogg's North American business.

"While this is the right move for the future of the company, it was a difficult decision because of the impact on affected employees," John Bryant, Kellogg Co. Chairman and CEO, said in the February news release. "We are doing everything we can to help our employees manage through this transition."

END OF THE LINE: 34 companies that could be the next to announce mass store closures

The company is providing severance and benefits, as well as offering retention packages for impacted employees, according to the news release.

Documents from the Texas Workforce Commission said the last day for distribution center employees in the Houston facility, located at 3010 Claymoore Park Dr., will be between July 29 and Aug. 11. The last day for snacks retail execution employees will be between Aug. 4 and Aug. 17, though most do not physically work at the distribution center.