Other plants will be closed in Fullerton, California; San Leandro, California; Federalsburg, Maryland; St. Marys, Ontario, Canada; Campbell, New York; and Lehigh Valley, Pennsylvania.
Advertisement
The company said it also will shift meat production from its Oscar Mayer plant in Davenport, Iowa, to a planned $203 million plant to be built several miles away. The company said on Wednesday it will close seven factories and lay off about 2,600 employees in North America.
This is the first time that Kraft Heinz has reported earnings for the combined company.
Company officials have said it wants the move to take about 24 months.
The company is controlled by the Brazilian investment firm 3G Capital, which is known for trimming costs.
In New York, Governor Andrew Cuomo and U.S. Senator Chuck Schumer announced up to $25 million in taxpayer funds to help Heinz upgrade three plants in upstate New York.
Kraft Heinz was created in July when H.J. Heinz Co completed its merger with Kraft Foods Group.
Mr. Mullen said the “difficult but necessary decision” came after exploring extensive alternatives, but added that Kraft Heinz also plans to invest hundreds of millions of dollars in modernizing many of its facilities.
Investors and analysts have been expecting cuts at the company since the $46 billion merger was announced in March. Corporate representatives sent an email to 11 News, explaining, in part: “Kraft Heinz fully appreciates and regrets the impact our decision will have on employees, their families and the communities in which this facility is located”.
Soglin said the city will work with the State Department of Workforce Development and the Workforce Development Board of South-Central Wisconsin to assist the workers in retraining and placement in their next employment opportunity.
Kraft Heinz Co. has lately announced that it is going to make cuts including shutting down seven plants and slashing 2,600 jobs.
Advertisement
Commenting on the results, CEO Bernardo Hees said, “Our third quarter results reflect continued progress as we integrate these two great companies while driving greater accountability, discipline and efficiency”. “Given the company’s indication that they will instead expand operations elsewhere in North America, my office is prepared to assist should workers qualify for trade adjustment assistance”.
