Kraft Foods to eliminate 1,600 North American jobs ahead of spin-off

Kraft Foods Inc, run by CEO Irene Rosenfeld, will eliminate about 1,600 jobs in North America this year, ahead of splitting its North American grocery business from its global snacks business and creating two publicly-traded companies.

The Northfield, Illinois-based company said the job cuts would come from realigning its US sales organisation, consolidating US management centres and streamlining the corporate and business units.

Kraft plans to eliminate approximately 1,600 positions throughout the US and Canada over the next 12 months, primarily from sales, corporate and business unit areas. About 20 per cent of these job eliminations are currently open positions.

These planned workforce reductions do not include any at Kraft's manufacturing facilities. With the impending separation into two independent companies, Kraft said that it is continuing its review of manufacturing facilities to consider what is best for both new companies.

"Making these tough choices is never easy, and we recognise the impact these changes will have on many of our people and their families," said Tony Vernon, executive vice president and president, Kraft Foods North America and CEO of the future grocery company.

"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," he added.