Kraft Heinz to Cut Jobs, Shutter Factories Under Integration Plan

Markets Reuters

FILE PHOTO -- A Heinz Ketchup bottle sits between a box of Kraft macaroni and cheese and a bottle of Kraft Original Barbecue Sauce on a grocery store shelf in New York City, New York, U.S. March 25, 2015. REUTERS/Brendan McDermid/File Photo (Reuters)

Kraft Heinz Co said on Thursday it would cut about 13 percent of its workforce, close factories and consolidate its distribution network as part of its efforts to merge Kraft Foods and H.J. Heinz.

Continue Reading Below

Kraft Heinz said it would incur pre-tax costs of $2 billion related to the elimination of 5,150 positions, the shutting of six factories and the streamlining of its distribution. (http://bit.ly/2qw1V4T)

The company will also spend an additional $1.3 billion on capital expenditures related to the integration on top of the $995 million it has spent since the merger in 2015. 

(Reporting by Gayathree Ganesan in Bengaluru; Editing by Saumyadeb Chakrabarty)

What do you think?

Click the button below to comment on this article.