Hundreds of people will lose their jobs as Kellogg’s announced plans to close a manufacturing plant in Omaha by the end of 2026.
The company confirmed in a press release Tuesday that a “phased reduction†in manufacturing will begin in late 2025 with a full closure expected “toward the end of 2026.†Employees were informed of the news during an early-morning meeting Tuesday.
About 500 union jobs and 100 non-union managerial roles will be impacted by the closure, according to Dan Osborn, the former leader of the Bakery, Confectionary, Tobacco Workers and Grain Millers Local 50-G Union. Osborn, who worked at Kellogg’s for nearly 20 years, has since left the company to run for the U.S. Senate but remains connected with union leaders.
“They’re really upset,†Osborn said of the Kellogg’s workers. “A lot of these people have dedicated their entire lives to working here. People are proud of the name and what they’ve done here.â€
“It’s unfortunate that it has to end this way,†Osborn said.
The closure comes as part of an effort from Kellogg’s to “consolidate its manufacturing footprint,†according to a press release. Production will be increased at facilities in Michigan, Pennsylvania and Ontario, while production will be scaled back at the Memphis, Tennessee, plant.
Only the Omaha plant will see a full closure in this round of "production shifts."
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“Actions that impact our people and the communities where we operate are challenging and are made with thoughtful consideration,†Kellog’s CEO and Chairman Gary Pilnick said in a statement. “We recognize and appreciate the tremendous contributions of our teams in Omaha and Memphis, and we are committed to providing them support throughout this transition.
Omaha Mayor Jean Stothert said in a statement that her office was notified of the decision to close the plant at 7:42 a.m. via email.
"Kellogg's had not communicated anything previously about the potential to leave Omaha, so this announcement came as quite a shock," she said. "I'm certainly disappointed that Kellogg's would make such a significant announcement this way."
Unionized workers at Kellogg’s ratified a contract that included protections against plant shutdowns after an 11-week strike in 2021. The contract specified there were to be no cereal production plant shutdowns through October 2026, which appears to be in line with the timeline laid out by Kellogg’s.
Employees lined up on the west side of the sprawling facility near 96th and F Streets at about 7 a.m. on Tuesday morning. The plant was closed on Monday, and employees were notified on Monday evening about the Tuesday meeting.
By 7:45 a.m., hundreds of cars began to exit the parking lot. An employee said they were given the rest of the day off with pay, and production was set to resume on Wednesday morning.