- Employees at Kraft Foods Group have reason for concern as the company nears a possible deal for an acquisition by H.J. Heinz Co. Significant job cuts are expected should the deal go through.
- Still more concerning for some employees is that many other larger companies in the industry are also employing cost-cutting measures and slimming down their workforces.
- Joel Koblentz, a partner at the Koblentz Group, a search firm in Atlanta, said that Kraft is a great classroom for employees to learn how to work with household brands, which can ensure they have the skills needed to be hired at other companies.
Many jobs in the food industry are coming from businesses that employ a smaller staff and use a guerilla marketing approach. Despite Koblentz's assurances, the marketing staff is one group particularly concerned as their experience with selling a larger brand may not always translate into the best methods for selling niche, specialty brands.
According to Bloomberg, other companies in the food industry have been facing similar cost-cutting practices: "Campbell Soup Co., ConAgra Foods Inc., Kellogg Co. and Mondelez shed more than 6,000 jobs combined in their most recent fiscal year for which data are available."
When Heinz was acquired by 3G Capital in 2013, Heinz saw similar job cuts and cost-cutting measures. Should Kraft be acquired by Heinz, to be decided July 1, more job cuts are expected.