Kraft Cuts Oscar Mayer Jobs in Madison, Wis.

By Jason Stein, The Wisconsin State Journal

Oct. 15–White-collar jobs at Oscar Mayer Foods in Madison including some of the highest-level executive posts are among the 600 salaried job cuts announced Friday by parent Kraft Foods.

Oscar Mayer spokeswoman Sydney Lindner confirmed that, for the second time in two years, there would be professional jobs lost at the company but declined to say how deep the cuts might go. Hourly union workers, who account for 1,230 of the company’s 2,200 employees at its Madison plant and headquarters, wouldn’t be affected, she said.

“At this time, it’s just not possible to cite specific numbers,” Lindner said of the losses. “Today’s announcement is not linked to Kraft-Oscar Mayer’s commitment to this community…to make Dane County a better place to live and work.”

Lindner said that Rick Searer, the Madison executive in charge of the Kraft convenient meals sector that includes Oscar Mayer, will remain in his post, as will executives in charge of other Kraft sectors, such as Cheese & Dairy. However, “a division layer within (Kraft) sectors is being eliminated but not the businesses themselves.”

Though she would not comment on individual positions or executives, Lindner confirmed that the division layer posts were at the second-highest level in Madison. Besides Oscar Mayer, divisions in the convenient meals sector based here include Natural and Organic Foods, responsible for the well-known Boca vegetarian burgers.

George Twigg, spokesman for Madison mayor Dave Cieslewicz, said Searer and the mayor spoke Friday morning about the Kraft announcement. “Any job loss is a bad thing but the mayor did not get the impression that it was going to be a widescale cutback,” he said.

Joe Jerzewski, president of United Food and Commercial Workers Local 538, confirmed that no union jobs were affected at Oscar Mayer.

Among the jobs at risk from Kraft’s worldwide “restructuring program” are 55 white-collar jobs in Oscar Mayer’s engineering area.

“I don’t have information by position but the changes taking place in engineering are part of the restructuring program,” Lindner said.

The restructuring, announced in early 2004 following more than a year of disappointing financial results for Kraft, is aimed to cut costs and boost Kraft’s marketing budget and bottom line by cutting 6,000 jobs over three years. Kraft’s statement Friday said the latest cuts will bring the total eliminated to 5,200 including 75 white-collar jobs at Oscar Mayer cut in 2004.

Kraft spokeswoman Kris Charles said about 250 of the job cuts announced Friday are at its North America commercial foods division, with Kraft’s Canadian operations being folded into that unit. Another 200 will be cut from the company’s global supply chain division and the other 150 are global corporate jobs, Charles said.

The maker of Kraft cheese, Nabisco crackers, Oscar Mayer meats and Post cereals, Kraft has approximately 96,000 employees worldwide, including 56,000 in the United States and Canada. The company reports third-quarter results Tuesday.

Kraft shares rose 23 cents to $29.79 Friday on the New York Stock Exchange, a day after sinking to a two-year low. Its stock has been pressured by high commodity costs and other industry challenges.

The Associated Press contributed to this article.

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