Kraft to eliminate 8,000 jobs, close up to 20 plants
January 31, 2006
Kraft Foods Inc., the nation''s largest food manufacturer, said January 30 it would eliminate 8,000 more jobs, or about 8 percent of its work force, and close up to 20 production plants as it broadens an ongoing restructuring effort, the Associated Press reports. Kraft said the cuts would save an additional $700 million in annual costs, atop a targeted $450 million in savings it already had hoped to achieve through a restructuring that began in January 2004. Northfield, Illinois-based Kraft already had announced closures of 19 production facilities and the elimination of 5,500 jobs. Kraft said that those efforts are on track, but it is expanding the restructuring plans to include more cuts. The company said it intends to close plants in Broadmeadows, Victoria in Australia and Hoover, Ala., but did not announce the other facilities it plans to close. Kraft also said it would trim 10 percent of its brand portfolio. Kraft said the additional cuts would cost the company $2.5 billion, bringing the total cost of its overall restructuring to $3.7 billion.