NORTHFIELD, IL -- Kraft Foods Inc. said it will eliminate up to 1,600 positions in North America as it moves closer toward splitting into two companies.
The Northfield, IL, food company said that all of those jobs will be cut in North America during the coming year. About 40% of the reductions will be made among sales positions, as Kraft plans to contract sales for its grocery business to two agencies. Kraft said the job cuts will not affect manufacturing positions, but it is reviewing headcounts at its factories. The food giant has roughly 127,000 employees worldwide, including 46,500 in North America.
Kraft also said it will consolidate its offices across the country. Its Madison, WI, offices, where its Oscar Mayer business is based, will remain open. The East Hanover, NJ, facilities, home to Kraft's snacks business, will become the U.S. headquarters for its global snacks business. Employees in its Tarrytown, NY, offices, where Kraft's beverage business is managed, will relocate to the greater Chicago area. Kraft's cheese, dairy and grocery offices in Glenview, IL, will close.
Kraft announced in August that it would split into two independent companies: a global snacks business and North American grocery business. It announced the top executives for the spinoffs last month. | SEE STORY