Not Great Cereal Sales Lead to Kellogg Job Cuts

ABC News photo

Morning Money Memo…

Kellogg earnings lack crunch, largely because Americans are eating less breakfast cereal. Now the maker of Frosted Flakes, Rice Krispies and Special K is planning to cut its global workforce by 7 percent by the end of 2017, along with plant consolidations and other cost-cutting measures. Cereal brands are facing more competition from products including oatmeal bars and Greek yogurt.

Call it the Ron Burgundy effect. Sales of the re-launched Dodge Durango soared last month and are up 50 percent for the year. Much of the credit goes to the ad campaign that features 70's TV anchorman Ron Burgundy, created by actor/comedian Will Ferrell. Edmunds analyst Michelle Krebs tells AdAge that shopping for the Durango "soared on after the ads launched" on October 5.

More Americans are deciding to quit their jobs and look for new opportunities elsewhere. Employment expert John Challenger, CEO of Challenger, Gray and Christmas, says the numbers for August from The Bureau of Labor Statistics are a good sign. "2.3 million voluntarily quit their jobs, and that was up from what we saw in July and nearly 11 percent higher than what we saw in August a year ago." When the economy improves more people take risks. The higher quit rate "means they feel more secure: that they could leave the safe haven of a job that perhaps they didn't like," says Challenger.

Toyota reports a profit surge for its latest quarter. Earnings rose 70 percent compared with a year ago. Cost cutting and a weaker yen are cited as reasons for the strong showing by the global auto firm.

Tesla posted a loss and its stock tumbled more than 11 percent. The electric car maker posted quarterly results that were well below forecasts with a loss of more than $38 million. Tesla shares this year have been among the market's strongest gainers. Recently CEO Elon Must said Tesla's stock was overpriced.

Richard Davies Business Correspondent ABC News Radio Twitter: daviesnow