1600 jobs are to go at Kraft Foods in North America, it was announced today. The company, which is known for its Cadbury and Philadelphia brands among others, said that 40% of the jobs would go because of a realignment of US Sales.
The announcement from Kraft comes as its snacks and groceries businesses are set to become two separate companies by the end of the year.
"But our plan for a more nimble company, combined with the current economic and competitive pressures, led us to this point. Taking the necessary steps now will enable us to continue investing in our beloved brands to drive growth."
It was also announced that management centers would be consolidated and organisational structures would be made leaner with the aim improving effectiveness and to fuel growth.
"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. We're confident that this transformational work will improve effectiveness and fuel the future growth of both companies."
Later this year, Kraft Foods will consolidate its US Management Centers leaving two of them, there are currently four. It was also announced that its beverage businesses unit which are located in New York and New Jersey will be moved to Chicagoland -where the snacks company will also be based - by December. The company will retain its sites in Greater Toronto.
The announcement from Kraft comes as its snacks and groceries businesses are set to become two separate companies by the end of the year.
Commenting on the job losses, Tony Vernon, Executive Vice
President and President, Kraft Foods North America and CEO of the future
grocery company, said:
"Making these tough choices is never easy, and we
recognize the impact these changes will have on many of our people and their
families.""But our plan for a more nimble company, combined with the current economic and competitive pressures, led us to this point. Taking the necessary steps now will enable us to continue investing in our beloved brands to drive growth."
It was also announced that management centers would be consolidated and organisational structures would be made leaner with the aim improving effectiveness and to fuel growth.
Irene Rosenfeld, Chairman and CEO, 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. We're confident that this transformational work will improve effectiveness and fuel the future growth of both companies."
Later this year, Kraft Foods will consolidate its US Management Centers leaving two of them, there are currently four. It was also announced that its beverage businesses unit which are located in New York and New Jersey will be moved to Chicagoland -where the snacks company will also be based - by December. The company will retain its sites in Greater Toronto.
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