At least 600 jobs are to go at Kraft Foods as the US food giant looks to “rewire the company for future growth”.
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Kraft is in the middle of restructuring its North American business in a bid to make its units more accountable, a spokesperson told just-food today (5 October).
Kraft plans to break up its North American operations from the current five units into eight. The move, which is slated for early next year, will include Kraft’s Oscar Mayer meats business and pizza division becoming separate units. Kraft’s business in Canada will also become a stand-alone unit.
“The plan is to streamline our organisational structure to produce faster growth,” the Kraft spokesperson said. She added that Kraft’s immediate “focus” was on North America, rather than its international operations.
Under its review, Kraft has identified that “at least 600 jobs” could be cut, mainly in the “corporate core” and “shared services” areas of the business, the spokesperson said. “The final number has not been determined,” she added. Kraft employs around 90,000 workers worldwide.
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By GlobalDataKraft has been at the centre of wide speculation that the company could look to offload parts of its business.
The company’s cheese business – which, under the new structure, will become a stand-alone business unit – has been the subject of some sale talk.
However, the spokesperson refused to be drawn on whether Kraft’s restructuring would make it easier to sell off parts of the business in the future.
“The objective is to make the businesses more accountable and to manage their own P&L. We can’t speculate on what we would do with any of our businesses in the future,” she said.
