WHITE PLAINS, NY – Nabisco Holdings Corp., seeking to turn around its flagging sales, will boost marketing and ad spending by 30 percent for its cookies and crackers including brands Ritz, Oreos, and Snackwell’s, the company said.
The restructuring effort also includes plans to eliminate 3,100 jobs or about 6 percent of its 52,400-person workforce. The company said it would close plants in the U.S. and overseas, including facilities in Argentina and Brazil. (Two years ago, Nabisco cut 8 percent of its jobs.)
“While we have made good progress on several fronts, our volumes, sales, and earnings for the first half are still stalled,” said president and ceo James M. Kitts. “These ongoing performance issues made it clear that the time for action was now.”
The company said that both moves are expected to “significantly reduce” Nabisco’s anticipated earnings for 1998. The company has previously said it expected this year’s growth to be flat.
The company’s announcement caused its stock to slip 12 percent to $40.50 last month. Analysts said the slump reflected a series of disappointments for shareholders. Company officials countered by saying the restructuring would save about $1 million a year.