Getty Images
Industryweek 9721 Kraft Heinz

Kraft Heinz to Close 7 Plants, Lay Off 2,600 Workers

Nov. 4, 2015
The company also announced it is moving its Oscar Mayer headquarters from Madison, Wisc., to Chicago.

Kraft Heinz announced today it will close seven manufacturing plants in the United States and Canad, lay off about 2,600 workers and move its Oscar Mayer meats business to Chicago from Madison, Wisc.

The plants that will close in the next 12 to 24 months include facilities in Madison; Fullerton, Calif.; San Leandro, Calif.; Federalsburg, Md.; St. Marys, Ontario; Campbell, N.Y.; and Allentown, Pa. Production will shift to other North American locations, Kraft Heinz said.

Kraft Heinz was formed in a merger that closed in July. The company is trying to slash $1.5 billion in costs by 2017. This round of layoffs will trim about 6% 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.

Mullen said Kraft Heinz would also replace a  facility in Davenport, Iowa with a newly-built plant and upgrade a facility in Champaign, Ill., into a "center-of-excellence" in dry and sauce production.

Copyright Agence France-Presse, 2015

Popular Sponsored Recommendations

Legacy Phone Lines Are Draining Your Profits

Oct. 30, 2023
Copper wire phone line expenses that support emergency devices could be costing your company millions of dollars in wasteful overhead expenses. Rates have been skyrocketing while...

Navigating Disruption: A Leader’s Guide to Strategy Under Uncertainty

Nov. 1, 2023
AI, sustainability, digital--industrials are facing disruptive forces that are redefining what it takes to win. What got your company where it is today won’t get you where you...

Beat the odds. Optimize product costs. Mitigate supply chain issues.

Sept. 12, 2023
Leverage fact-based supplier negotiations. Enhance design. Get to market faster. Our comprehensive Should Cost Analysis guide shows you how.

Digital Production Tracking: How Connected Platforms with No-Code Deliver Value

Sept. 19, 2023
Manual tracking lacks the real-time visibility manufacturers need to identify root causes and remain competitive. Digital, connected production tracking is crucial for your operations...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!