Source: Lisa M. Keefe, MEATINGPLACE, 1/18/12

Kraft Foods will eliminate some 1,600 positions in North America over 2012, part of the company’s move to split into two independent, publicly held companies in the grocery and snacks businesses, the company said in a news release.

About 20 percent of the positions are now open and will simply remain unfilled. About 40 percent of the positions being cut are chalked up to what the company calls a realignment of the sales organizations, consolidation of the U.S. management centers and streamlining of the corporate and business unit organizations.

These planned eliminations do not include manufacturing facilities. “Kraft is continuing its review of manufacturing facilities to consider what's best for both new companies,” according to the release.

Grocery
The grocery company, which will include Kraft’s Oscar Mayer unit, will begin using two sales agencies to manage relationships with the supermarket and mass retail customer network, and the convenience store network. The new sales organization is expected to be in place by April 1.

In addition, when the North American grocery company is spun off later this year, it will reduce its U.S. management center locations from four to two, according to the release.

"Having the majority of our business units together in one location will provide greater development opportunities for our people and will help us continue building our brands more efficiently and collaboratively," said Tony Vernon, president of Kraft Foods North America and CEO of the future grocery company.

However, the Oscar Mayer business unit’s management center will remain in Madison, Wis.

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