Processing Magazine

Kraft to cut 400 jobs in North America

October 8, 2008

Kraft Foods Inc. has announced they are cutting 400 jobs in North America to reduce costs, according to the Associated Press. The layoffs will represent a cut of about one percent in the company''s North American work force. The nation''s largest food and beverage maker is in the middle of a three-year transformation that aims to improve sales and profits by lowering costs, launching new products and boosting marketing. The company hopes to deliver cost savings of $1 billion a year as part of a separate restructuring plan. Kraft, like most food makers, has had to deal with higher commodity and energy costs. Kraft, though, has been able to offset much of the increase with higher retail prices. Those price increases helped the company report strong profit and sales growth in its last quarter.