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Kellogg Announces Layoffs Alongside $326 Million Profit

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Kellogg Co. breakfast cereals sit on display in a supermarket in Princeton, Illinois, U.S., on Friday, Jan. 27, 2012. Kellogg Co. will release its 2011 fourth quarter earnings on Feb. 2, 2012. Photographer: Daniel Acker/Bloomberg via Getty Images | Getty

Nov 4 (Reuters) - Kellogg Co reported a 3 percent rise in quarterly profit, helped by a fall in cereal-making costs, and said it would slash 7 percent of its workforce by 2017.

The company's shares rose 1 percent in premarket trading.

Net income of the world's largest cereal manufacturer rose to $326 million, or 90 cents per share, in the third quarter ended Sept. 28 from $318 million, or 89 cents per share, a year earlier.

The maker of Corn Flakes, Chocos cereal and Eggo waffles said revenue fell marginally to $3.72 billion.

Kellogg announced a new cost-cutting program called Project K to strengthen existing businesses in its core domestic markets and increase growth in developing markets.

The program is expected to result in total pre-tax charges of between $1.2 billion and $1.4 billion, the company said.

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