Kraft Foods plans to slash 8,000 jobs

[RamboLiberal]

http://www.usatoday.com/money/industries/food/2006-01-30-kraft-cuts_x.htm

Kraft Foods (KFT) the nation's largest food manufacturer, said Monday that it will eliminate 8,000 jobs and close up to 20 plants as it broadens its restructuring effort.

Kraft said the cuts would save $700 million in annual costs, atop a targeted $450 million in savings it already had hoped to achieve through a restructuring that began in 2004.

Kraft brands include Maxwell House coffee, Jell-O desserts and Oscar Mayer meats.

[saltpoint]

1. Well, damn. 'Bout time for another tax cut. / nt

[Bush_Eats_Beef]

2. Don't worry, Bush says we have "the strongest economy in the world"

For Immediate Release
Office of the Press Secretary
January 30, 2006

President Bush Meets with the Cabinet
Cabinet Room

THE PRESIDENT: I want to thank the members of my Cabinet for being here. We just had a really good discussion about the year 2006. Tomorrow night I'm going to be speaking to the Congress, giving the country my State of the Union address. I can't tell you how upbeat I am about our future, so long as we're willing to lead.

We talked about how to make sure that America continues to spread the peace and to protect ourselves. I heard from the Secretary of Defense and Deputy Secretary of State about very positive initiatives -- not only in the Middle East, but in the Far East, as well. We talked about how to make sure this economy of ours stays the strongest economy in the world, and that we recognize we can't just sit back and hope for the best, that we've got to lead. And so we had a good discussion about matters such as health care and energy and education, all of which I'll address tomorrow night.

http://www.whitehouse.gov/news/releases/2006/01/20060130.html

[Deja Q]

15. We lead? Commercial imperialism is not different from military conquest.

Instead of killing people outright as the military does, commercial imperialism merely has people suffering before they die.

[LiviaOlivia]

3. If they plan to outsource their factories

I wonder what health dangers we risk with the future use of their products? We know in BushWorld that the FDA serves the corporations and not the people.

[ladjf]

5. I believe that the "survival" business is about to take off in

America. People may have to relearn how to live without a National infrastructure and resources. It won't be easy.

[LiviaOlivia]

7. You're right

Let add my sympathies to the US Kraft workers. Maybe someone will buy up the plants/factories and offer jobs to Americans and produce American products. And healthier products. God willing.

[Deja Q]

14. It can't be done. Not with the economic imbalance.

[ladjf]

4. First , it was computer tech, then airplanes, then autos. Now

we can't even compete in the cheese market. About the only thing left is eggs. We don't lead the world in anything good, just things bad.

[LiberalEsto]

6. Does that mean our cheese & mayo

will be made in China?

[The_Casual_Observer]

8. All that shit can be made in India and China

It isn't fresh and can be stored for months on slow boats (including those "meats")

[DainBramaged]

18. See how much of your relishes are made overseas now

[this_side_up]

9. Lots of chemicals are banned in this country so

the corporations have their factories elsewhere.

That same elsewhere produces the foodstuffs that
are imported into this country.

It is no wonder They don't want us to know where
our food comes from.

In addition, the FDA can inspect what - about
1% of the food that comes in. There is no
way they can catch which foods have which
chemicals on/in them.

Buy locally. Grow your own. Do without.

[llmart]

31. Amen.

Americans aren't very smart when it comes to their food. They'd rather eat a pound of processed Kraft "cheese" than an ounce of really good real cheese. It's cheaper, don't you know? And cheaper is the average American's god these days - not quality. They want their cupboards and fridges loaded to the gills so they can get even fatter and fatter.

This country is all about quantity, not quality. Kraft "cheese" is an oxymoron.

[0007]

10. Where's all this good economy, junior talks abouts?

Airlines going belly up, car manufactures closing down, food companies are laying off, The Army can get people to enlist, corporations are moving to other countries, some are down sizing, and most all corporation do their banking outside the U.S.

[Nikia]

11. It sounds like they aren't outsourcing from the article

They are just cutting positions and closing plants. I am not sure how they plan to keep up with their sales. It also sounds like they are going to discontinue some of their products. There are ways to cut jobs without affecting production: better technology (less labor intense machines) and consolidating plants (larger plants need fewer people per unit of production because some positions are necessary whether the plant is small or the plant is very large).
They won't move cheese production for U.S. sales to Asia. Production plants are generally located near a bulk of raw material and there are an abundance of dairies in the U.S., not in Asia. Although product can and is shipped overseas, it really does not make good economic sense for cheese produced for U.S. consumption to be produced overseas.
Kraft does also contract the services of other companies (Yes, some Kraft products are actually made by their smaller competitors.). I wonder if they are going to do more of this to make up for the closed plants.

[Deja Q]

13. Maybe they're not saying the "O" word...

:tinfoilhat:

[BrotherBuzz]

30. No mention in the article but Brand X could be making a dent in the market

Times are tight and the luxury of perceived quality brand names may be losing ground to generic or brand X products. People are watching their nickles and dimes.

[Deja Q]

12. Well, 8000 people can no longer buy Velveeta and coffee... damn.

Is the CEO also cutting his job for not keepin' profits up? That's his job, to ensure the business remains profitable. You don't save yourself by slicing off a hand. And when it comes to workers, the lifeblood of this country, you slice them away and you may as well slice your genitalia. You can't keep expanding when nobody can get your goods...

How about any magical new jobs popping up in China?

Short term cheating means long term failing.

Nobody can buy the product so the product maker goes belly-up too.

[rodeodance]

16. already had announced .....the elimination of 5,500 jobs

Northfield-based Kraft Kraft said Monday that those efforts are on track, but said it is expalready had announced closures of 19 production facilities and the elimination of 5,500 jobs.anding the restructuring plans to include more cuts.

The company said it intends to close plants in Broadmeadows, Victoria in Australia and Hoover, Ala., but did not announce the other facilities it plans to close. Kraft also said it would trim 10% of its brand portfolio.

Kraft said the additional cuts would cost the company $2.5 billion, bringing the total cost of its overall restructuring to $3.7 billion.

Kraft announced the moves Monday while reporting fourth-quarter earnings results that fell short of analysts' expectations.

[Mika]

21. "earnings results that fell short of analysts' expectations"

Kraft announced the moves Monday while reporting fourth-quarter earnings results that fell short of analysts' expectations.

Who's "expectations"?

Who the F wouldn't expect more layoffs with the BushCrimeFamily running roughshod over the US economy?

[Raine]

17. Pathetic

that a company can't sell food to an overweight country, what's with that?? :shrug: I wonder if they are still owned by Philip Morris the story didn't say, maybe a tobacco company doesn't know how to market macaroni and cheese. :silly:

[depakid]

19. Wouldn't that be Phillip Morris....err "Altria?"

one of the most profitable companies around?

[silverweb]

20. Yup.

Altria, formerly known as Phillip Morris, owns Kraft. I've been boycotting them for quite some time already -- not that lack of my meagre purchases would make any difference to them, but it makes me feel like I'm doing some little thing.

They own a lot of food brands:
http://www.altria.com/about_altria/1_2_3_ourcompaniesbrands.asp

Also, they're not at all shy about using genetically modified ingredients:
http://www.krafty.org/articles/smoking_verdict_wont.html

[pinniped]

22. Despite this, Snotty Scotty will still proclaim the eCONomy unstoppable.

Corporate bankruptcies, mass outsourcing, massive layoffs, nothing can mess up Spinmeister Snotty Scotty.

[zann725]

23. ...and "Velveeta" cheese. OMG, they're "outsourcing" Velveeta!

What's this world coming to?!

As American as "Velveeta" cheese...no longer will apply.

But we'll no doubt still have a "market for" and build our own stealth bombers, and humvees.

[yourout]

24. But the Economy is just hummin along.

[karlrschneider]

25. Do they know how to make cheese in India?

:eyes:

[oasis]

26. The average Kraft employee will have an expanded work schedule.

Welcome to Bushland formerly known as U.S.A..

[judaspriestess]

27. then Kraft will announce

that they are moving their operations to India and creat 8,000 jobs over there.

Wake the fuck up America!!

[reprobate]

28. If Orlando is any indication, the economy is in piss poor shape.

We walked thru a major outlet mall last nigh. Fully one third of the stores where shuttered, closed, out of business. Stores that had been there for years.

That can only mean that people simply don't have the money to buy non-survival items. It must go for food and clothing and gas, and electricity. And I just read that the savings rate has gone negative, for the first time since the Depression.

Some Great economy. Oh sure, for Bush and his cronies things are good. For working folks things just ain't so great.

[Blue_Forney05]

29. Well to put this in a positive note

if we go into a depression because nobody has jobs to bunk junk from China, then the Repubs will lose big time in the election. A very similar thing happened in the 1920s and hit its zenith in October of 1929. WE GOT FDR as a result, who implented many valuable programs to give people jobs, skills, and improve our nations infrastucture(Which is in very bad shape today).

[llmart]

32. Sometimes I think a depression.......

is what it's going to take to wake middle class Americans up. I hate to say it or see it, but in this capitalistic country money (or lack thereof) is the only thing that gets average Americans riled up.

[barb162]

36. yeah, when the discount stores are going out of business,

consumers are having more than a few problems. I expewct to se bankruptcy rates really picking up very soon. People are living off their credit cards to survive, I think. ( I thought Orlando was one of the booming areas of the USA)

[HughBeaumont]

33. Management messes up, workers pay the price. Rinse, Repeat.

Better get used to seeing this until we elect someone who isn't going to enable miserly corporations and the pigs who run them. King George's reign of terror is going to be a bloody one.

Your enemy isn't a bearded man on dialysis in a cave somewhere. Your enemies are tailored-suit-wearing bald, fat, rich Americans that make 500 times as much as you do.

[samplegirl]

34. Kraft foods to cut 8,000 jobs

Here we go booming again!

http://www.journalstar.com/articles/2006/01/31/business/doc43dea23a47ab3069269067.txt

[liberalmike27]

35. Hey

Don't you know, we don't need jobs, we can just invest in the market. What are we going to use to invest you say? Hmmmm...

[BiggJawn]

37. Boycott Velveeta!

Not hard to do, I only eat "real" cheese, anyway...

OK, so I DO like some of that squeez-cheez on my crackers...

[VegasWolf]

38. America, land of the jobless!! nt

[Nikia]

39. Thinking about this more, although I feel bad for the affected people

Kraft really isn't the best company to their employees nor do they make the best products. They profit from their name recognition and past reputation. Sure they have good HACCP plans and minimum quality standards, but in the name of profit they have cheapened their products to the detriment of quality. They didn't have to close those plants, lay off people, or make some other cost saving decisions to continue to make money. They just wanted to make more money and hell with everything else.
I encourage DUers to try other brands from smaller American companies who aren't going to outsource at all and who won't be closing plants until they can no longer stay in business. You might be suprised to find that some of it is actually better than Kraft.

[SuperWonk]

40. I told you guys...

To keep buying that mac and cheese.

Now look what you've done...