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Martin Moylan
St. Paul, Minn.

Cost-cutting General Mills closing California, Massachusetts plants

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Cheerios at 70
In this June 16, 2011 photo, boxes of Cheerios are shown in a store in Akron, N.Y. The iconic cereal from General Mills is 70 years old this year.
David Duprey / AP 2011

Updated 5:20 p.m.

General Mills plans to close two plants employing 680 people as part of an effort to cut corporate costs by another $100 million.

The news comes a day after the Golden Valley-based food company reported disappointing sales and a 25 percent drop in its quarterly net income.

One plant in Lodi, California, primarily manufactures cereal. Production would be shifted to other General Mills facilities. The other plant in Methuen, Massachusetts, makes yogurt. The company said it is optimizing its yogurt manufacturing network, consolidating production at other facilities.

General Mills said it will provide severance and transition benefits to affected employees.