Kraft Foods will be putting about 295 drivers nationwide out of work this summer. The company is putting an end to its private trucking fleet.
Kraft made the announcement Friday that the company would be shutting down the private fleet and will utilize contract and commercial carriers to handle their transportation needs going further.
There are 10 base sites across throughout the country that are home to Kraft’s private fleets, and the cuts will happen in phases. The layoffs will be completed by the end of the year.
Kraft met with its fleets employees to let them know the news and make them aware of the separation benefits they will be provided. Those benefits include severance pay based on years of service, subsidies for health insurance-COBRA benefits during the severance period, and outplacement assistance.
Company spokesperson, Joyce Hodel, said shutting the private fleets down will allow Kraft to take advantage of the capabilities of commercial carriers.
“The plans have nothing to do with the performance of the Kraft private fleet,” Kraft Spokesperson Joyce Hodel told WFMZ. “Our Kraft private fleet has provided outstanding service to their internal and external customers.”
What do you think about the cuts at Kraft? Is it only a matter of time before we see a similar fate to all private fleets? What do you think it would take to keep private fleets in business?
Sources: WFMZ.com, NUjournal.com