Kraft Foods sheds 1600 jobs as part of corporate split
Kraft Foods (NYSE:KFT) said late Tuesday it will cut 1,600 positions in North America in 2012 as it prepares to split its business into two parts.
The job cuts represent about 1.26 percent of the companys total workforce and will primarily be in sales, corporate and other business units in the US and Canada.
Kraft said it wont reduce its manufacturing, but two of its four US management centres for its grocery business will be eliminated.
Kraft Foods chairman and CEO, Irene Rosenfeld, said: When we announced our decision to create two world-class companies last August, we said both would be leaner, more competitive organizations.
For the past year, the North American team has been working to streamline operations to deliver sustainable top-tier performance and continue to invest in our iconic brands. Were confident that this transformational work will improve effectiveness and fuel the future growth of both companies.
Last year, Kraft announced it would split its snack and grocery business into two companies to improve effectiveness.
Kraft whose products include Oreo, Philadelphia cream cheese and Oscar Mayer meats plans to spin off its North American grocery business into a separate company from its snacks and candy division which includes UK chocolate maker Cadbury.
Kraft also said fiscal 2011 net revenue would be up by about 10 percent and expects to report 2011 operating earnings per share of at least $2.28.
Previously, Kraft had forecast operating earnings per share of at least $2.27, excluding any potential currency impact.
Analysts, on average, had expected Kraft to earn $2.27 per share this year, according to Thomson Reuters.
The company plans to release its financial results on February 21.
Tags: Corporate