Kraft Foods plans to restructure three facilities in the US in 2013, a move which is expected to lead to a loss approximately 90 jobs at its facility in New Ulm, Minnesota.
The New Ulm facility currently employs approximately 555 people. It produces Kraft's Velveeta range, Deli Deluxe cheese slices, Handi-Snacks brand, MilkBite milk and granola bars, and cheese for foodservice customers.
Following the restructuring, the Velveeta line and the bar production line will be shifted to the company's facility in Champaign, Illinois. However, Kraft Foods plans to invest $25m in the New Ulm facility to install new equipment and improve infrastructure in order to boost the production of cheese.
These restructuring plans are likely to eliminate 80 full-time positions and 10 salaried positions at the facility. Kraft plans to give the employees the option to voluntarily retire or resign in exchange for severance benefits.
