Kraft Heinz Co. said it is cutting 2,500 jobs in North
America--more than 5% of its global work force--as it aims to slash
at least $1.5 billion from the newly combined company's annual
budget.
Kraft Foods Group Inc. and H.J. Heinz Co. merged last month in a
deal orchestrated by Heinz owners 3G Capital Partners LP and
Berkshire Hathaway Inc.'s Warren Buffett.
Now that the integration is underway, a Kraft Heinz spokesman
said Wednesday that its new management team--led primarily by
legacy Heinz executives and 3G officials--has restructured the
company to simplify its operations and leverage its much-larger
scale. "This new structure eliminates duplication to enable faster
decision-making, increased accountability and accelerated growth,"
the spokesman said.
As part of that process, the company, with about $28 billion in
annual revenue, will eliminate 2,500 jobs in the U.S. and Canada,
including 700 employees at its Chicaga-area headquarters in
Northfield, Ill. Kraft Heinz has a second headquarters in
Pittsburgh.
Write to Annie Gasparro at annie.gasparro@wsj.com
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