Kraft Heinz cuts thousands of jobs

Kraft Heinz cuts thousands of jobs

kraft-heinzFood giant Kraft Heinz is closing seven manufacturing plants in North America, resulting in the loss of 2,600 jobs. The company will invest hundreds of millions of dollars in upgrading its facilities. Kraft and Heinz merged in a US$46bn deal in July to create North America’s third biggest food company.

The latest cuts are in addition to the 2,500 job losses in the region, which the company announced in August. The company will see a reduction of 6% of its workforce taking place over the next two years. The cutbacks are part of the new company’s plan to save about US$1.5bn in operating costs by the end of 2017.

Manufacturing plants in the US states of California, Maryland, New York, Pennsylvania and Wisconsin will be closed, along with one in the Canadian province of Ontario.

The maker of well-known brands such as Heinz Ketchup is controlled by the Brazilian investment firm 3G Capital, which is known for trimming costs.

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