Kraft to axe 6,000 jobs

WORLDWIDE – Food group Kraft has said that it is to shed 6,000 jobs and close 20 plants as part of a far-reaching restructuring scheme.

The announcement came as it announced its results for 2003. Chief Executive Roger Deromedi admitted that the company is “not satisfied” with the figures. Announcing the restructuring programme, he said: “We are committed to delivering consistent, long-term top and bottom line growth. Our sustainable growth plan will reinvest the cost savings we generate to build brand value, transform our portfolio and expand our global scale.” In the last quarter of 2003, Kraft earnings per share slumped 7.4% while operating income dropped 9% to $1.5 billion, something the company blamed on high commodity and ingredient costs.

Kraft’s cheese, meals and enhancers division was led by growth in the cheese sector, and saw volume up 1.7% in 2003 compared with 2002. The company put cheese growth down to increasing consumption and growth in its market share following a recent investment programme.