Food giant cutting jobs: Kraft Heinz Layoffs
Published: August 13, 2015
Food giant cutting jobs: Kraft Heinz Layoffs, Kraft Heinz on Wednesday laid off 700 workers at Kraft’s corporate headquarters in north suburban Northfield, part of a cost-cutting plan that will slash the combined company’s head count in the U.S. and Canada by 2,500 jobs.
Employees affected by the cuts, which have been expected for months, will get “generous” severance benefits that last at least six months and outplacement services, said Michael Mullen, Kraft Heinz’s senior vice president of corporate and government affairs. The cuts took effect immediately.
“As we work to build something special at the Kraft Heinz Company, the leadership team has examined every aspect of our business to ensure we are operating as efficiently and effectively as possible,” Mullen wrote in an email. “We have developed a new streamlined structure for our organization to simplify, strengthen and leverage the company’s scale. This new structure eliminates duplication to enable faster decision-making, increased accountability and accelerated growth.”
Kraft employed about 2,000 people in Northfield before the layoffs. The 2,500 job cuts amount to slightly more than 5 percent of Kraft Heinz’s global workforce of about 46,000. Mullen declined to break down the layoffs by location but said that cuts in Pittsburgh, Heinz’s hometown, were not “material.”
Northfield village President Fred Gougler said the layoffs were expected, adding that Heinz’s cost-cutting measures served as a warning for Kraft employees after the merger.
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