Kraft Heinz Co. Shuts Down 7 Factories And Cut Jobs

Kraft Heinz Co (KHC.O), will try to reduce its costs by closing seven factories and cutting almost 2,600 jobs all over North America.

BBC reports that the layoff is only an addition to the 2,500 workers the company had announced to let go in August.

3 months after the merger between Kraft Foods Group and H.J. Heinz Co the decision to trim down 5.9 percent of the company's worker rose up.

The two firm merged in a $46bn (£30bn) deal in July to craft North America's third biggest food company. Kraft Heinz, and currently has about 44,100 employees. Some investors and analysts expect cuts in the company since the $46 billion merger was announced in March.

Closing the deal in July created the third-largest North American food company. Kraft Heinz expected to save about $1.5billion in yearly costly by the end of 2017.

Some manufacturing plants in US states of California, Maryland, New York, Pennsylvania and Wisconsin will be closed, alongside with one in the Canadian province of Ontario.

The famous brands such as Macaroni and Cheese Dinner and Heinz Ketchup producer also said it would close a nearly 100-year-old Oscar Mayer meat plant in Wisconsin and travel the operations to Chicago.

Kraft Heinz will also shift it's Oscar Mayer processed meats business to Chicago from Madison, Wisconsin, he said. 

Shares of Kraft Heinz, which presently has a propos of 44,100 employees, were unchanged in after-hours trading at $75.82.

Acccounts of existing factories in North America will hold the production at the seven manufacturing facilities that had been closed over the next two year according to Kraft Heinz spokesman Michael Mullen in a statement.

The company plans to move the production from Daveport, Iowa facility into a new location in Davenport area. Part of its cheese production will be moved from its Champaign, Illinois, facility to other factories.

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