Kraft Foods’ split into two entities has been in the works for almost six months now. Now as the split continues to get underway, the company is considering other ways to slim down. The Illinois-based snacks and grocery company (soon to be a snacks company and a grocery company) has announced plans to cut as many as 1,600 jobs between its U.S. and Canada locations over the course of the year.
The Wall Street Journal reports that 20 percent of the job positions being cut are currently open, so that much just comes down to no longer needing to fill them. But the rest are expected to be made among corporate positions – nearly 40 percent of the cuts are to be made from sales positions alone, with Kraft planning to contract sales from third party sources for its grocery business going forward. Other plans include relocations as the company consolidates resources – its Glenview, IL, Kraft cheese and dairy office is slated for closure, and employees at its beverages offices in Tarrytown, NY, will be moving to Chicago.
"Making these tough choices is never easy, and we recognize the impact these changes will have on many of our people and their families," Tony Vernon, executive vice president and president of Kraft Foods North America and future CEO of the grocery side of the business, told WSJ in a statement. "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."
There are no current plans to cut jobs from Kraft Foods’ manufacturing division, but the company has stated that decisions are still being made.