Cited: CNN

While many analysts and lawmakers have expressed their hopes and confidence that the unemployment rolls in the U.S. states will continue to decline and that a healthy recovery in the jobs market is just around the corner, Kraft Foods announced today that they would be laying off up to 1200 employees this year in operations conducted at various locations in the U.S.  According to Kraft, the move comes as part of their larger plan to separate their company into two distinct units, one focused on groceries and the other on the snack business. The cuts are likely to be felt in their sales, corporate and business units, and should not effect manufacturing plants, at least that’s what one spokesman for Kraft said earlier today at a press conference to announce the plans for Kraft Foods going into 2012.

However, some industry watchdogs and labor union executives are concerned about parts of the Kraft statement that mention that the food giant will continue to monitor their manufacturing facilities to consider what is best for the two new entities that will spin off from the larger company later this year. Often they say, this can be corporate speak for layoffs. Kraft says that it will reduce the number of management centers in its new grocery division after the company splits and will relocated its units in Tarrytown, N.Y. and East Hanover, New Jersey. The corporate offices for both the grocery division and the snack division will be located in Chicago, Illinois. The news was well-received by the market with Kraft shares rising by 1.5% following the information released earlier today.

My take:

If Kraft is looking for ways to stay lean and fast to react to the changing trends in their market, the move to two separate divisions makes sense. And if they have to cut some employees in both management and on the line, they won’t hesitate to do so.