US branded food giant Kraft Foods has warned that 7,500 jobs will soon be axed as it streamlines its operations with biscuit and cracker producer Nabisco, which it acquired for US$18.9bn in late 2000.
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Kraft said that the Nabisco merger would generate annual savings of US$600m by 2004. For this year, savings are expected to reach about US$300m.
In a filing with the Securities and Exchange Commission (SEC), the company said it has so far spent about US$74m on severance and related costs.
Kraft added that the plant closures, which number 16 to date, would be completed by the end of this year at a total cost of between US$200m and US$300m.
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