USA: Kraft Foods to cut 600 jobs

By | 17 October 2005

US food manufacturer Kraft Foods has announced a number of moves to streamline its organisational structure that will lead to 600 job losses.

Kraft North America Commercial (KNAC) will retain its existing five consumer sectors (snacks, beverages, cheese & dairy, convenient meals and grocery), with no change in the leadership of any sector. Divisions within the sectors will be eliminated, and, effective immediately, leaders of specific product categories - such as pizza, cream cheese and cookies - will report directly to the KNAC sector heads.

Effective in January 2006, the Kraft Canada organisation will be realigned to better integrate it into the KNAC sector structure. Canadian business leaders will report directly into the KNAC sectors to better leverage the company's scale and marketing programmes in North America and reduce duplication of resources, while maintaining local consumer insights, the company said.

The company's global supply chain function in North America has been redesigned to align with the changes being made in KNAC, and global corporate functions will also be streamlined to support these new structures.

As a result of these decisions, Kraft said it will be exiting its leased office facility in Tarrytown, NY early next year. The teams currently located there will be relocated to other Kraft-owned facilities in the US.

These changes will lead to approximately 600 salaried positions being eliminated, Kraft said. The staff reductions and associated costs are part of Kraft's previously announced global restructuring programme, under which the company said about 6,000 positions at all levels of the organisation would be eliminated over a three-year period; including the 600 reductions just announced, a total of about 5,200 job cuts have now been identified.

Companies: Kraft

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