General Mills plans $100M cost cuts in Minnesota

General Mills, a food manufacturer based in Golden Valley, plans to cut $100 million in costs to cope with a tough economic climate. The company reported weak sales in its winter quarter and has lowered its financial forecasts. CEO Jeff Harmening stated that the year has been challenging. He acknowledged the need for the company to adapt to changing consumer behavior. Many shoppers are now choosing cheaper alternatives instead of famous brands like Lucky Charms or Chex Mix due to ongoing inflation. Several businesses, including Minnesota-based Sun Country Airlines and Target, are also facing similar struggles. General Mills will begin its cost-cutting measures this summer but has not shared specific details on how they will achieve this. Recently, the company ended its internal innovation program and paused new investments. General Mills now expects its sales to drop by 2% for the fiscal year ending in May, a significant change from earlier predictions of flat to slight growth. Earnings per share could fall by up to 8%. For the third fiscal quarter, sales decreased by 5% to $4.8 billion, and profits fell by 7% to $625 million. While these figures were better than analyst expectations, the company's stock price dropped by 3% in pre-market trading after the new outlook was announced.