We welcome you to JobBank USA and hope your job hunting experience
is a pleasant one. We hope you find our resources useful.
January, 2004
Kraft Foods Inc. said Tuesday that it will lay off 6,000 jobs, or 6 percent of its workforce, and close 20 plants worldwide following sluggish sales and earnings for the food company.
Kraft Foods is the parent company for Oscar Mayer in Madison, which employs about 2,500 workers. Seventy-five salaried workers in Madison will be laid off as part of the first wave of job cuts, said Donna Sitkiewicz, director of corporate affairs for Kraft.
Analysts have speculated that Kraft may sell the Oscar Mayer division, which produces bacon, hot dogs and other meat products. Sitkiewicz declined to comment on the speculation.
Kraft will eliminate approximately 1,300 positions in North America in the first quarter and close three plants in Canton, N.Y.; Farmdale, Ohio; and in central Europe in an initial wave of closures. The remaining layoffs and closures will take place over three years.
The Northfield, Ill.-based food company said the restructuring will cost about $1.2 billion in pre-tax charges, with the majority of the charges incurring in 2004 and 2005.
Sitkiewicz said the restructuring is necessary because the company was unhappy with its performance in 2003. Kraft wants to position itself more with consumer trends and enhance product innovation, goals that will be supported by the cost savings generated by the restructuring plan.
The company said net income declined 6.7 percent to $869 million, or 50 cents per share, compared with $931 million, or 54 cents per share, for the same period a year ago. Fourth-quarter revenue increased 6.2 percent in the quarter to $8.3 billion from $7.8 billion.
For the year, profits grew 2.4 percent to $3.5 billion, or $2.01 per share, from $3.4 billion, or $1.96 per share. Revenue increased 4.3 percent to $31 billion from $29.7 billion.
Kraft said $303 million of the increase in fourth-quarter revenue was due to favorable currency translation. For the year, currency translation accounted for $730 million of its increase in revenue.
Email This Page!