Kraft Foods To Cut Up To 1,600 Jobs In U.S. And Canada

Kraft Foods cutting jobs macaroni and cheeseNORTHFIELD, Ill. -- Kraft Foods Inc. plans to cut 1,600 positions in North America as it prepares to split its business in two.

The Northfield, Ill.-based food company said Tuesday that it plans to eliminate the positions throughout the U.S. and Canada during the coming year. The cuts will be made among its sales, corporate and other business units. About 20 percent of the job eliminations are currently open positions.

Kraft has roughly 127,000 employees worldwide, including 46,500 in North America.

The company announced in August that it would split into two independent companies: a global snacks business and North American grocery business. Kraft said the moves are needed to help the businesses run more effectively.

The bulk of the cuts -- about 40 percent -- will be made among sales positions. Kraft plans to contract sales for its grocery business to two agencies: Acosta Sales & Marketing for its grocery store and big box retailer sales and Crossmark for convenience store sales.

Kraft also said that it is consolidating its other offices across the country, where some management, researchers and other employees work. It plans to halve the number of U.S. management centers to two from four.

The company's offices Madison, Wis., where its Oscar Meyer business is based, will remain open. Its East Hanover, N.J. facilities, where its snacks business is based, will become the U.S. headquarters for its global snacks business.

Employees at the company's offices in Tarrytown, N.Y., where its beverage business is based, are moving to the greater Chicago area. Its cheese, dairy and grocery offices in Glenview, Ill., will close.

Kraft didn't cut jobs at its manufacturing facilities at this time. But the company said in a statement that with the pending split, it is still reviewing this part of its business to consider what is what's best for both new companies.

"Making these tough choices is never easy, and we recognize the impact these changes will have on many of our people and their families," Tony Vernon, executive vice president and president of Kraft Foods North America and CEO of the future grocery company, said in a statement.

"But our plan for a more nimble company, combined with the current economic and competitive pressures, led us to this point," Vernon said. "Taking the necessary steps now will enable us to continue investing in our beloved brands to drive growth."


Next: Delhaize To Close Food Lion, Bloom Stores, Cut Almost 5,000 Jobs In U.S.



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JEFFREY

Just so everyone knows, The New England Patriots are not now, nor have they ever been owned by Kraft Foods.

March 21 2012 at 2:30 AM Report abuse rate up rate down Reply
Cate

Someone has to pay Tom Brady $28 million this year for football.

January 19 2012 at 2:58 AM Report abuse rate up rate down Reply
LENNON

I know someone that used to work for Kraft. Talk about corporate greed. This company is the Devil. "YES WE CAN"

January 19 2012 at 2:40 AM Report abuse +1 rate up rate down Reply
ollie0717

Don't worry the President is creating new jobs. He's working hard for the middle class remember?

January 19 2012 at 1:27 AM Report abuse +1 rate up rate down Reply
mgall92623

What will happen to my Kraft stock?

January 19 2012 at 12:16 AM Report abuse rate up rate down Reply
candalou2

I do not see better times for most American people

January 18 2012 at 10:38 PM Report abuse +5 rate up rate down Reply
Rita

A COMPANY OF THIS SIZE AND REP. HAS TO B POOR MANAGEMENT AND GREED. THEY OWN THE PATRIOTS, NOW I HOPE THEY LOOSE!!!! AND THEY OUT SORSE, I WONT BE BUYING ANY OF THERE PRODUCTS.

January 18 2012 at 9:35 PM Report abuse +3 rate up rate down Reply
elysianfields08

Great news

January 18 2012 at 9:23 PM Report abuse rate up rate down Reply
John Myers

Key Krafp, why don't you just pick up and outsource yourselves.

January 18 2012 at 8:41 PM Report abuse +3 rate up rate down Reply
Sandy

I dont get it ??? Why they having it hard ? I am sure wages didnt go up for workers and price of kraft food has jumped in last 3 years People have been eating more at home I hope are cheese dont come from china like hershey food kisses to save money I think it just plain Greed !!! on companies trying make a buck!! The only people making out is rich on the bad times I I like Donalds Trump idea to out sourcing if kraft ships products from over sea I will boycott like I have hershey foods

January 18 2012 at 7:33 PM Report abuse +3 rate up rate down Reply
2 replies to Sandy's comment
seattlewkr

Why? Corporate greed, period.

January 18 2012 at 10:59 PM Report abuse +1 rate up rate down Reply
threedawgknights

Sure its Greed! They dont want to pay decent livable wages to there employees so they cut the jobs and send them overseas for the cheap labor or child labor. More profit for them. Look at the company's that have already done that, continue to do it, and expect more! Big business doesnt give a hoot about you, me, or anyone else, just Profit and Money!

January 19 2012 at 12:25 AM Report abuse +2 rate up rate down Reply

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