General Mills cutting 850 jobs, expects profitable 2012 [UPDATE]

General Mills was the seventh most-profitable company in Minnesota last year, raking in over $1.5 billion.

But the company is still feeling pressure from Wall Street to "lower costs and boost efficiency," and as a result announced this morning that it plans to layoff 850 workers out of its worldwide workforce of about 35,000.

The company added that it still expects to post an adjusted fiscal 2012 profit of $2.53 to $2.55 per share.

The Wall Street Journal notes that "food makers industrywide have been under pressure as budget-conscious U.S. consumers push back against price increases aimed at offsetting rising commodity costs."

In March, General Mills reported that fiscal third-quarter earnings edged down as higher costs hurt profit margins and sales volume fell due to higher prices.

:: UPDATE ::

The Star Tribune reports that Twin Cities workers will be victims of about half of General Mills' 850 planned layoffs.

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