NEW YORK (CNN/Money) -
Kraft Foods Inc. said Tuesday it will eliminate about 6,000 jobs, or 6 percent of its work force, and close 20 of its production facilities worldwide over the next three years.
The nation's largest food company also said it will take charges of $1.2 billion before taxes, in an effort to offset slowing trends with cost cuts, and about approximately 1,300 salaried positions in North America will be eliminated in the first quarter.
The move came as the maker of Oreo cookies, Velveeta cheese spread and Oscar Mayer meats announced fourth-quarter earnings of $869 million, or 50 cents a share, down from $931 million, or 54 cents, in the year-earlier period.
Analysts had expected earnings of 50 cents a share on average, according to a poll by Reuters Research, a unit of Reuters Plc.
Kraft (KFT: Research, Estimates), which went public in June 2001, had a tough 2003 as new products failed, high-level executives departed and earnings results fell short.
The food maker, which acquired Oreo cookie maker Nabisco in 2000, has also experienced problems in the competitive cookie category.
Altria (MO: Research, Estimates), formerly Philip Morris Cos., owns about 84 percent of Kraft's shares.
-- from staff and wire reports
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