Kraft Foods cutting more jobs

Kraft Foods cutting more jobs

Kraft Foods started a massive restructuring process two years back to cut costs and get back to profitability. However, the latest news in is that they still have not managed to do enough and are now planning to cut more jobs.

The largest food manufacturer in the United States has announced their plans to slash an additional 8,000 jobs. This means that the company is getting rid of 8% of their workforce. In addition, they are also planning to close down 20 production plants worldwide.

Interestingly, these new plans from the company come when they had just recently reported their fourth quarter financial results that surpassed Wall Street’s expectations. They have already laid off 5,500 workers and shuttered 19 plants.

With these latest job cuts, the company should in all save around $700 million annually. Chief Financial Officer Jim Dollive said in a statement on these new plans of the company: “Further cost reduction is a necessity in the current environment.”