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Kellogg to close Sharonville distribution center, cut all jobs

Company closing 39 centers across counrtry
Posted: 2:42 PM, Feb 09, 2017
Updated: 2017-02-09 19:08:45-05

SHARONVILLE, Ohio – Truck driver Gary Daugherty said the news came as a shock.

The father of twins is losing his job because Kellogg is shutting down its Sharonville distribution center – and 38 others around the country.

"It’s pretty discouraging,” said Daugherty, who had worked there for six years.  “A lot of guys have been there since they were 18 and 30 something years.

The cereal and snack giant wouldn’t disclose how many people it is laying off, saying only that its distribution centers employed about 30 full-time workers on average.

But Daugherty said Sharonville has twice or three times that many.

"Our place, we have like 80 people, right around there, maybe 90,” he said.  But the closings will affect many more  in grocery and retail stores, he said.

“They have people that put the product on the shelves that won't have their jobs, or the sales reps. It's basically a lot of people."

Daugherty said he had no idea the ax was falling. He came into work Wednesday  thinking everything was fine.  

"We learned that the company is shutting down all 39 distribution centers across the U.S., and basically by July 29 it's ending," Daugherty said.

Kellogg is doing away with its direct store delivery model and transitioning to its warehouse model -- which currently exists for 75 percent of the company.

Why?

"Save money,” Daugherty said. “I's easier to ship it straight to the customer instead of having us do the job."

Kellogg says it was the "right move" though a "difficult decision."  

"We are optimistic that our employees will find similar employment once this transition is complete," a company spokesperson told WCPO.

Meanwhile, Daugherty has one goal. 

"Take care of my family and make sure that they're OK," he said.

But he and dozens of his co-workers are left wondering what’s next.

"The fact that companies do this to their employees is just discouraging," Daugherty said.

He said his heart goes out to the other workers looking  new job. He will begin his search right away.