(Reuters) - Kraft Foods Group Inc , which sells Planters peanuts, Oscar Mayer lunch meat and Velveeta cheese, said it approved a $650 million restructuring plan related to its spin-off from Kraft Foods Inc in October.

The company said the restructuring cost involves severance related to the spin-off, asset disposals and other one-time expenses.

Kraft Foods Group said about half of the total restructuring cost is expected to result in cash expenditures. In addition to the restructuring, the company also approved related capital expenditures of $200 million.

It expects to complete the restructuring by the end of 2014.

Kraft Foods Inc spun off its North American grocery business on October 1 as Kraft Foods Group. Mondelez International Inc , whose brands include Oreo cookies, Cadbury chocolate and Trident gum, is the name of what remains from Kraft Foods Inc after the spinoff.

(Reporting by Juhi Arora in Bangalore; Editing by Saumyadeb Chakrabarty)