Newsline: Kraft Taking Harsh Steps Toward Recovery
Kraft Foods Inc., plans to axe 6,000 jobs or 6% of its staff, and close up to 20 plants over the next three years in a global turnaround plan expected to cost $1.2 billion.
Kraft, which reported a 6.7% decline in net profit for the fourth quarter of 2003, said the plan would help to provide consistent results in the future.
"While Kraft's fourth quarter results were
in line with our expectations, we clearly are not satisfied with our performance in the quarter or for the full year," said chief executive Roger Deromedi.
"The corrective actions we began in late 2003 are showing progress, and the stronger steps we are announcing ... will get us back on track for sustainable growth."
Kraft said it would begin the shake-up by shedding 1,300 jobs in North America in the first quarter of this year, and closing plants in Canton, New York; Farmdale, Ohio, and central Europe.