General Mills announced a plan to cut $3 billion in costs over the next four years to return to profitable growth amid a consumer spending slump. The Cheerios maker will save approximately $2 billion by focusing on products and trends that resonate with consumers, while the remaining $1 billion comes from accelerating a previously announced restructuring program aimed at improving productivity. CEO Jeff Harmening said the cost-savings plan is critical to offset inflation, fund growth investments, and support stronger earnings, with $750 million in savings expected for fiscal year 2027. The company reported flat organic net sales for the fourth quarter and a 2% decline for the full year, as weaker consumer sentiment drove more shoppers to discount items. General Mills posted a $2.1 billion operating loss in its most recent quarter after investing in price cuts to attract cash-strapped consumers, and it now plans to increase the remarkability of its brands by adding in-demand attributes like protein.
General Mills IncCompany reports flat organic net sales, 2% full-year decline, and $2.1B operating loss; cost cuts are a response to weak performance.