Supply Chain & Logistics / Industry News

Kraft Foods Discontinues Private Fleet Service

Kraft Foods, Northfield, Ill., announced plans to discontinue its Champaign, Ill.-based private fleet service by year’s end, eliminating 285 jobs across 10 sites.

Drivers and fleet support staff jobs are being cut in three phases, with most of the jobs being phased out starting in late September. The private fleet transports products and materials across Kraft's network of plants and distribution centers.

"Our fleet has done tremendous work. This is not a reflection on their work, and they've provided terrific service to our internal and external customers," says Joyce Hodel, company spokeswoman. “[But], larger carriers have greater scales and capabilities."

Affected employees in Champaign were offered separation benefit packages that include severance pay based on years of service, a medical subsidy for continuation of health coverage-COBRA benefits and outplacement services. Kraft will also work with any employees losing their jobs who wish to apply for openings at the Champaign plant.

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