Sara Lee to cut 700 jobs worldwide

WASHINGTON: Diversified consumer business firm Sara Lee today said it will slash 700 jobs, which is expected to save $250 million. The company plans to outsource parts of its North American and European Finance (transaction processing) and Global Information Services (applications development and maintenance) groups, besides its global indirect procurement activities.

In a statement today Sara Lee said the efforts are aimed at raking in "annualised benefits of 200-250 million dollars in the next three years.

"As a result, approximately 700 positions, including roles currently performed by contractors, would become redundant."

Apart from Sara Lee, many other American firms including AT&T, Citigroup, PepsiCo and Dow Chemicals have announced layoffs to cope with the economic turmoil.

The company expects to begin job cuts in North America in the current fiscal, and plans to complete the process globally in three years, the statement added.

"In addition to cost savings, business process outsourcing will help Sara Lee further drive standardisation, increase efficiency and provide flexibility," Sara Lee Corp Chairman and CEO Brenda Barnes said.

Sara Lee's businesses include Fresh Bakery, food service, and international household and body care, among others.