Kraft's brands include Cadbury, Maxwell House, Nabisco and Oreo.
NEW YORK (CNNMoney) -- Kraft Foods announced plans Tuesday to cut roughly 1,600 jobs in North America over the next year.
The Dow component said in a statement that the cuts were part of its preparation to split into two separate public companies by the end of 2012, one focused on the grocery business and the other on snacks.
The cuts will come "primarily from sales, corporate and business unit areas," and do not include manufacturing facilities, the company said.
Kraft (KFT, Fortune 500) "is continuing its review of manufacturing facilities to consider what's best for both new companies," the company said.
"Our plan for a more nimble company, combined with the current economic and competitive pressures, led us to this point," Kraft Foods North America President Tony Vernon said in the statement.
Kraft's grocery division will also reduce its number of management centers after the company's split, relocating units in Tarrytown, N.Y., and East Hanover, N.J. Both the grocery and snacks companies will be headquartered in the Chicago area.
Kraft's brands include Cadbury, Maxwell House, Nabisco and Oreo. The company's shares were up about 1.5% in trading Tuesday. 
