Kraft to cut up to 8,000 more jobs

[MORTARDUDE]

http://www.fromthewilderness.com/fre...tories.shtml#3

Kraft to cut up to 8,000 more jobs

Food firm gouged by weakening sales, commodity costs, says it also expects to close up to 20 additional facilities.

January 30, 2006: 5:09 PM EST
CNN
http://money.cnn.com/2006/01/30/news...aft_jobs.reut/
index.htm?cnn=yes

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CHICAGO (Reuters) - Kraft Foods Inc. said Monday it would cut up to 8,000 more jobs, or 8 percent of its work force, through 2008 as the food company, hammered by higher commodity costs and sluggish sales volume, looks to save more money.

Shares of Kraft (Research) jumped over 3 percent in after-hours trading Monday after closing at $30 on the New York Stock Exchange.

The job cuts are part of the second major restructuring announcement Kraft has made in two years and will add $2.5 billion in restructuring charges to a plan first announced in 2004, the company said.

The announcement came as the maker of Oreo cookies, Jell-O gelatin and a host of other well-known brands, posted a 23 percent increase in net income, though part of the increase came because the company had an extra week in the 2005 quarter.

Kraft, like many packaged food companies, has been struggling with a range of commodity cost increases in recent years and is still being pressured by high fuel and packaging costs.
Price increases have only been able to match part of the higher costs and in some instances also chased consumers to less expensive brands, especially in Europe, the company said.
Kraft said it expects to close up to 20 additional facilities under the expanded restructuring, generating an additional $700 million in annual cost savings.

The company posted a profit of $773 million, or 46 cents a share, for the fourth quarter, compared with $628 million, or 37 cents a share, a year earlier.

Revenue rose 10 percent to $9.7 billion, but would have been up only 3 percent without the extra week, the company said.

[b3196]

Now thats cutting the cheese!!!!
Bob K

[revwardoc]

Yep, typical American way of business; when the management staff is about to lose money because of bad decision making, put 8,000 people out of work. And they're justified in their actions. After all, they have houses in the Hamptoms, and condos in Aruba, and villas in France and Italy to pay for. Not to mention the trophy wives. What a country!