The company's reorganization plan will result in cumulative pretax charges of about $35 million, including $20 million in employee-related charges tied to severance and other termination benefits while the other $15 million will primarily consist of third-party consulting fees.
Kellogg previously announced that it was divesting some of its cookies, fruit and fruit-flavored snacks, pie crusts and ice cream cones businesses to Ferrero International S.A. The divestiture is expected to close at the end of July.
The full reorganization, which the company said is designed to simplify the organization that is behind what's left of the North American business, will be completed by Dec. 31, 2020.
Kellogg shares rose 0.7% to $56.92.