Thousands of jobs will be eliminated at Kraft Foods in the Unites States, as the company attempts to improve its below-estimates profits.
The snack food giant will slash 1 600 jobs in North America throughout 2012, and according to a statement released by the company today, about 40 per cent of those will be corporate staff while 20 per cent are vacancies that will remain unfilled.
Kraft announced details of its plan to split the company in two late last year, separating the ever-expanding snacks business from the slower grocery business.
Chief executive officer Irene Rosenfeld, who will lead the snacks company after the spinoff, said in the statement that the job cuts are part of the overall plan to increase profits and return money to shareholders.
“When we announced our decision to create two world-class companies last August, we said both would be leaner, more competitive organizations,” she said.
“For the past year, the North American team has been working to streamline operations.”
The global snacks and candy business the company is developing in the restructure will have $31 billion in revenue from brands including Cadbury, Oreo and Trident gum, while the grocery company will have revenue of $17 billion.