Kraft Foods Plans Job Cuts
By Susie AnKraft Foods Plans Job Cuts
By Susie An
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Northfield-based Kraft Foods plans to eliminate hundreds of jobs by the end of the year.The 400 lay-offs will be spread out geographically. The cuts affect 1 percent of Kraft’s North American work force. Company spokeswoman Renee Zahery says the lay-offs will primarily hit management offices. She blames high food and energy costs facing the industry this year.
ZAHERY: We want to fund growth opportunities and manage our margins and things so there was a need for us to reduce overall costs. And we are doing that on a continuous basis and eliminating positions was something we did as a last resort.
Despite those higher costs, Kraft reported strong second quarter earnings over the summer. It beat Wall Street estimates and increased its profit forecast for the rest of 2008.