Heinz to Close 3 Plants, Trim 1,350 More Jobs

Production to be moved to other plants

   

Heinz to Close 3 Plants, Trim 1,350 More Jobs

Food maker Heinz has announced that it will shut down three factories and cut some 1,350 jobs in North America over the next six to eight months.

Production will be moved to other plants.

Its new owners, Berkshire Hathaway (BRK.A), bought Heinz in June for more than $28 billion — teaming up with private equity firm 3G Capital.

From the Wall Street Journal:

In all, the company expects to have eliminated a net 1,480 jobs when the newly announced steps are completed, leaving Heinz with 6,800 hourly and salaried employees in North America, among about 32,000 employees world-wide. It didn’t give a comparable figure for before the acquisition.

3G Capital has a reputation for slashing payrolls and other spending in companies it acquires. It employed a similar strategy when it took over fast-food giant Burger King in 2010. 3G Capital installed former Burger King Chief Executive Bernardo Hees to lead Heinz.

The cuts total 200 jobs in Florence, South Carolina, 410 jobs in Pocatello, Idaho, and 740 employees in Ontario, Canada.

The struggling economy has made is rough on food makers such as Heinz, which have faced increasing store brand goods that consumers find more economical when trying to cut costs.


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/heinz-close-plants-cuts-jobs-berkshire-hathaway/.

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