Kraft Heinz says it will close seven manufacturing facilities in North America
New York - AFP
Kraft Heinz said Wednesday it would close seven manufacturing facilities in North America and cut 2,600 jobs as it streamlines following the merger of two food giants.
Kraft Heinz, which was formed in a merger that closed in July, said production at the seven facilities would shift to other plants. The moves will eliminate nearly six percent of the company's workforce.
"Our decision to consolidate manufacturing across the Kraft Heinz North American network is a critical step in our plan to eliminate excess capacity and reduce operational redundancies for the new combined company," said Michael Mullen, a senior vice president at the company.
"This will make Kraft Heinz more globally competitive and accelerate the company's future growth."
The job cuts come on top of 2,500 positions eliminated in August. The food giant is controlled by the Brazilian investment firm 3G Capital, which is known for cutting costs.
Facilities affected by the move include sites in the states of California, Maryland, New York and the Canadian province Ontario.
Mullen said Kraft Heinz would also replace a facility in Davenport, Iowa with a newly-built plant and upgrade a facility in Champaign, Illinois into a "center-of-excellence" in dry and sauce production.