According to local news reports, General Mills will shut down its G-Works innovation studio and pause any new investments through its 301 Inc. venture capital arm, costing approximately 40 employees their jobs.
G-Works was launched in 2019 with a goal of developing $100 million businesses within five years, the report said, while 301 Inc. was initially an internal incubator founded in 2012 and shifted toward investing in external businesses.
General Mills spokeswoman Chelcy Walker told the news outlet in a statement that the company’s new Strategic Growth Office has forced an adjustment to how the company pursues growth initiatives, and that the changes do not impact low-carbohydrate pasta brand Carbe Diem, pet supplement brand Fera Pets or the company’s current 301 Inc. portfolio. Company leaders reportedly blamed headwinds in the broader food industry for the closure.
General Mills is expected to announce its quarterly earnings later this month, and some analysts predict the company could lower its outlook for the year at that time. This shouldn’t be terribly surprising to those following the company, as its presentation at the Consumer Analyst Group of New York (CAGNY) conference last month shared few rainbows and roses.
Jeff Harmening, chairman and CEO, flat out said that results had “not met expectations over the past 18 months,” while CFO Kofi Bruce also wasn’t satisfied with the performance, adding that “after five years of market share growth, we stepped back in 2024.”
