Kraft says up to 8,000 jobs cut as part of turnaround plan

[Doondoo]

The head of Kraft Foods Inc. said Tuesday that as many as 8,000 jobs could be cut as part of a continued effort to help the world's second-largest food and beverage maker revive its slumping sales.

Kraft says it may eliminate up to 8,000 jobs - about 9 percent of its work force - and exit up to 20 production facilities, according to a document outlining the plan.

Since 2004, Kraft has eliminated 5,500 jobs.



http://www.kentucky.com/mld/kentucky/16740551.htm

[Turbineguy]

1. Somebody's gotta pay

for those big exec bonusses

[TheCowsCameHome]

2. .....As long as overpaid executives don't suffer any $$$ losses.

[benfranklin1776]

20. Yes its the workers who always get the shaft.

The execs golden parachute out after wrecking the company. Whatever happened to selling a better and more innovative product as a way to boost sales, rather than destroying the work force? Ah that is passe. The workers who have good and innovative ideas and have committed sizable chunks of their lives to these organizations, in many cases believing all the propaganda about "team effort" and "being one big family" yada yada, are ignored. See its not for the sake of the long term health of the enterprise as a stable productive entity that is the objective, but rather the short term profits of the stockholders are sacrosanct and the CEO's dance to their tune. So the companies are pillaged and sold off in pieces to gin up the stock price and inflate the managerial bonuses. The wrecked shell of a once stable prosperous organization and the attendant wreckage of the community is all that is left.

[partylessinOhio]

3. This is an indication of Bush's booming economy?

Our manufacturing is gone, now we are seeing the exit of our food production facilites too.

And Congress twiddles it's thumbs worrying more about their breaks and airplanes rides. We are losing our America and our American lifestyles for the greed of a few.

[Ishoutandscream2]

14. Yeah, the Bush economic miracle continues

:mad:

[Dont_Bogart_the_Pretzel]

19. The Bush economy has been Miracle Whippped!

n/t

[TexasLawyer]

16. U.S. manufacturing is STRONG!

Now that we have officially defined "manufacturing," as including the assembly of hamburgers and tacos, that is.

ps: this is for real.
http://www.alternet.org/columnists/story/18079/

[AnneD]

30. I was relieved...

several months ago when I learned that constructing burgers and tacos was munufacturing. Thank God these manufacturing jobs haven't been exported.:sarcasm:

[merwin]

4. I love how they're both the 2nd largest as well as a struggling company

just doing what it needs to survive.

It's amazing that anybody falls for it.

[AndyA]

5. Kraft, Ford, GM, Chrysler, Hershey's, Sprint, all laying off employees and closing

facilities.

Yes indeed, the Bush Economy is rolling right along creating lots of low paying, no benefit, dead end jobs.

But when a country has a person like George Bush in charge, how could we possibly expect more? The standards start off low from the very top on down.

[sharp_stick]

10. Don't forget Pfizer

The worlds largest pharmacuetical company announced plans to Pfire 10,000 more employees and close facilities around the world. This is in addition to the thousands they have laid off in stealth campaigns over the last 2 or 3 years. I don't see a good economy for any except those with keys to the executive garage.

[AndyA]

12. I was afraid I was running out of room. But honestly,

it's difficult to keep up with all the announcements, isn't it?

And our government is doing NOTHING to put a stop to it. NOTHING!

[Bozita]

22. Masco (Delta faucets, Behr paints, more) is also cutting 8,000 jobs

Masco Reports Fourth Quarter Loss of $186 Million, Will Cut 8000 Jobs

02/20/2007

TAYLOR, MI -- Despite record sales of $12.8 billion during 2006, building products manufacturer Masco posted a loss of $186 million during its final quarter of the year. The company said a rapid slowdown in the housing market during the last six months of the year affected the company's financial performance.

The company also released a cautious outlook for 2007, citing a continued slowdown in housing. It intends to eliminate 8000 jobs nationwide amid the uncertainty.

http://www.buildingonline.com/news/viewnews.pl?id=5824&subcategory=60

[anitar1]

6. Weekly rising prices at the market. Pure greed

and mismanagement.If I can pay a few cents more for local and organic products, why not go that way ? I have and am enjoying eating food that actually tastes good. I do not buy any convenience foods--too costly. I am sure this is what is happening across the country. Why support this corporation ?

[OhioChick]

7. Gotta love

this booming economy. :sarcasm:

[Double T]

8. Kraft, as part of corporate america, just does not GET IT..........

a person needs a job with a decent paycheck to be able to buy THEIR PRODUCTS. When the 2nd great depression begins, perhaps THEN they will understand IT!!

[Bozita]

9. Check this gobbledygook from Kraft's website ...

The company's four strategies are:

* Rewire the organization for growth
* Reframe Kraft's categories to make them more relevant to consumers
* Exploit Kraft's sales capabilities
* Drive down costs without compromising quality


http://phx.corporate-ir.net/phoenix.zhtml?c=129070&p=irol-newsArticle&ID=964795&highlight=

[TheCowsCameHome]

11. i.e. - line our pockets and to hell with our employees

[CatholicEdHead]

17. Ouch my head hurts with so many corporate buzz words

Invest all of its growth, as well as restructuring savings, back into the first wave of trajectory-changing growth initiatives. This represents an incremental $300 million to $400 million investment in quality, marketing, R&D and capability-building.
.......
In 2008, the company expects its operational turnaround to gain momentum. Kraft will again grow revenue 3% to 4% organically, with operating income exceeding revenue growth. The company will invest a portion of its growth back into the business, including further marketing spending, toward a long-term target of 8% to 9% of net revenue.

So, screw the workers over in a "growth initiative" and put the rest towards "marketing spending"?

[Skittles]

27. corporate whore-speak

that's what I call it :puke:

[aaronbees]

24. As someone who covers business issues....

I gotta say the new and creative ways companies try to gloss over job cut impacts with meaningless language is pretty damn disgusting.

[BluePatriot]

13. Geez, so many job cuts lately.

I don't even know what to say. It makes me mad. Grrr.

[blues90]

15. As I have said before

Before long we will have no jobs at all , not as fast as they vanish and this is only becoming more common each day .

There is no web site available for all those who have lost their jobs to gather together and form some sort of rebel cause as if this would do any good .

I feel many times this is their way of reducing the population .

I suppose these corps feel they can cut down their labor and still sell to those who have jobs left , there are 300 million in the USA after all .

We have no true number of people who are out of work and suffering .

What good is healthcare if you have no home or income or hope for tthe future .

[area51]

23. I think it is the republinazi way to cut down on the population.

Republinazis love death, and by offshoring/inshoring jobs, and making sure we don't have single-payer, universal healthcare, they are implementing their plan on culling the population of the U.S.

[Megahurtz]

29. Sure looks that way.

:(

[UpInArms]

18. there's just no way for this to have been foreseen

:sarcasm:

[Nikia]

21. How does cutting jobs increase sales?

I understand how cutting jobs might increase profits since there is less labor expense, but that doesn't necessarily increase revenue.
Although I am sorry for the people losing their jobs, being a big company doesn't mean that they are a good company. Being a big company doesn't mean that they deserve a large market share.
Of course, I work for a small company, much smaller than the average Kraft plant, which competes with Kraft on some products. Being their size, having their reputation, and the ability to hire many outstanding people should give them a huge advantage. They should ask themselves why smaller companies are able to take away their business.

[Trajan]

25. Saw a substantial want ad for electricians at Kraft again today ....

Its been running for a while ....

What is up with that ? ... looking for turnover ? .... Out with the old and in with the new 'lower' wage ?

[Nikia]

28. Kraft is a big company

They might close plants or eliminate certain positions, but other plants may experience no layoffs or even increase in employment. Even if the electrician at a plant in one state was laid off, it is unlikely that the person would be willing to relocate to take a position in another state.

[Forkboy]

26. I'd say it's a big turnaround for those getting layed off

:mad: