Kraft Foods France and its subsidiary, LU France, are to shed 170 jobs as a result of the merger of their respective commercial activities and headquarter functions.  

However, the move will also lead to 45 new jobs being created.

The job cuts do not concern staff working at the companies' production plants.

"In a difficult economic climate, characterised by a fall in consumption, intensified competition and (downward) pressures on prices, Kraft Foods in France must strengthen its competitiveness and put a stop to the erosion in its market shares," the company said.  

Kraft acquired Danone's Lu cookie and cracker business in 2007 in a deal worth US$7.2bn. The combined workforce currently stands at around 4,000 employees.