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Kraft to cut 1,000 jobs
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October 26, 2001: 12:44 p.m. ET
Food maker will reduce headcount as part of early retirement program.
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NEW YORK (CNNmoney) - Kraft Foods Inc. said Friday it will cut 1,000 of its 117,000 positions as part of an early retirement program aimed at integrating its Nabisco unit.
The nation's largest food company said the program will result in a $160 million pre-tax charge in the first quarter of 2002, but it sees the cuts saving $80 million annually.
Analysts expect Northfield, Ill.-based Kraft (KFT: down $0.53 to $34.37, Research, Estimates) to earn 32 cents a share in the current quarter, according to earnings tracker First Call.
"As Kraft and Nabisco have come together, we have captured significant synergies," co-CEO Betsy Holden said. "That has enabled us to operate with fewer staff positions."
Philip Morris (MO: up $0.40 to $49.79, Research, Estimates), the world's largest tobacco company, took Kraft public in June 2001 as part of the second-largest initial public offering ever. Philip Morris still controls 84 percent of Kraft. 
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