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Kraft Heinz Plans To Cut 2,600 Jobs, Will Close Down Factories

Kraft Heinz Plans To Cut 2,600 Jobs, Will Close Down Factories
Heinz Ketchup and Monster’s University Kraft Macaroni and Cheese / Mike Mozart CC BY 2.0


Kraft Heinz Plans To Cut 2,600 Jobs, Will Close Down Factories

The Kraft Heinz Company just announced that there will be job cuts. The company’s decision to layoff employees will affect 2,600 jobs.

The just announced the newly merged company’s third quarter results with an investor presentation that emphasizes the need to achieve cost savings by doing some restructuring and integration. And for November, the latest cost savings move announced is the consolidation of its North American manufacturing facilities.

According to a report from CNBC and Associated Press, the company plans to cut as much as 2,600 North America factory jobs while it looks to close down around seven of its factories. Moreover, the said production facilities that will soon be closed down include those in San Leandro, California; Fullerton, California; Campbell, New York; Federalsburg, Maryland; Lehigh Valley, Pennsylvania; Madison, Wisconsin and St. Marys in Ontario, Canada.

According to Kraft Heinz SVP of Corporate and Government Affairs Michael Mullen, the production done in the said locations will be moving to other existing factories in North America in the next 12 to 24 months. At the same time, Kraft Heinz had said that it would also be closing down its meat processing plant in Davenport, Iowa and move its production to a new facility that would be built nearby.

The goal is to be able to achieve an “aggressive cost savings” amounting to as much as $1.5 billion by 2017. And since Kraft and Heinz became one merged company in July, there has been a continuous goal of delivering productivity and restructuring savings. In fact, the company is looking turning around its RTD beverage, boxed dinners and frozen meals businesses. The US and Canada saw lower shipments for the said products, although these products had experienced strong growth in other countries.

Meanwhile, Kraft Heinz reports that its products like ketchup, pasta sauce, cold cuts, coffee and cream cheese are driving the company’s growth forward. Moreover, there is also strong growth experienced in products like Heinz Yellow Mustard and Lunchables.

Last August, Kraft Heinz decided to do a round of corporate headcount reductions, leading to the laying off of 2,500 non-factory jobs following the merger.

Related news: Job Cuts Coming to Maersk Oil

About Jennifer Ong

Jennifer Ong has been covering and writing stories since 1998. Over the years, she has worked on stories on business, health, lifestyle, entertainment and travel. She has also previously written shows for television. When she's not on the job, she enjoys wine and Formula 1.

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