General Mills closing Indiana, Canada plants in cost-cutting move

General Mills plans to close two more North American plants, shedding 500 jobs in the process.

The plants in New Albany, Indiana and Midland, Ontario, in Canada produce refrigerated baked goods. The cuts are part of ongoing efforts to reduce General Mills' manufacturing and distribution costs.

The Indiana facility could close by mid-2016, eliminating 400 jobs. The shutdown of the Ontario plant would put about 100 people out of work.

The downsizing reflects tough competition in the packaged foods industry and consumers holding back on spending, and that's made it hard to increase sales and profits, said Jack Russo, a stock analyst with the investment firm Edward Jones.

General Mills had 43,000 employees as of last May. Prior to the two latest plant closures, the maker of Yoplait yogurt and Cheerios cereals had announced 1,500 job cuts company wide.