Kraft Foods to cut about 600 jobs

updated 12:59 p.m. ET Oct. 14, 2005

NORTHFIELD, Ill. - Kraft Foods Inc. on Friday said it would cut about 600 jobs and exit leased offices in Tarrytown, N.Y., early next year, the latest moves under a sweeping restructuring effort it unveiled in early 2004.

The nation's biggest food company, which is about 85-percent owned by Altria Group Inc., said it will eliminate divisions within each of its five consumer sectors comprising snacks, beverages, dairy, convenient meals and grocery.

Leadership of each sector will be left intact, but leaders of specific products within each sector like pizza and cookies will report directly to sector heads at Kraft North America Commercial. Kraft's food brands include Nabisco cookies, Oscar Mayer deli meats, and Kraft brand cheese.

Canadian business leaders will also report directly to the North America sector heads, a change the company said would better integrate Kraft Canada into the new structure. The company also said it would revamp its global supply chain function.

Kraft in January last year said it would cut about 6,000 jobs over three years. Roughly 5,200 jobs have been cut so far, including those announced on Friday, it said.

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