In a widely expected move, Kraft Heinz is cutting 2,500 jobs, the company announced Wednesday. That amounts to 5% of the company’s 46,000 employees, with affected workers located in the U.S. and Canada.
This marks the first round of layoffs at the newly merged food giant after Heinz bought 51% of Kraft in March in a deal brokered by Warren Buffett and the Brazilian private equity firm 3G Capital. Given that management group’s reputation for aggressive cost-cutting, most observers expect more layoffs to follow.
As the AP reports, the cost-cutting process began last month with a memo to employees in which Hees told employees to print on both sides of paper (a rule Brito enacted at AB InBev as well) and to conserve office supplies. At Kraft headquarters, employees no longer get free Jell-O.
In a statement, Kraft Heinz spokesperson Michael Mullen said the cuts are part of a new structure that “eliminates duplication to enable faster decision-making, increased accountability and accelerated growth.”
Free Jello is a staple of American worker power.
Kraft employed about 2,000 people in Northfield before the layoffs. The 2,500 job cuts amount to slightly more than 5 percent of Kraft Heinz’s global workforce of about 46,000. Mullen declined to break down the layoffs by location but said that cuts in Pittsburgh, Heinz’s hometown, were not “material.”
Northfield village President Fred Gougler said the layoffs were expected, adding that Heinz’s cost-cutting measures served as a warning for Kraft employees after the merger.
“We were not surprised, but that doesn’t make it any easier for us,” Gougler said.
With the news, the village adds its name to a long list of local communities feeling the brunt of corporate consolidations and restructurings. Other companies with offices in the Chicago area have laid off more than 7,700 workers since the beginning of the year, according to outplacement firm Challenger, Gray & Christmas. The list includes downstate companies Caterpillar and Deere, which are among the state’s largest employers. While many of the layoffs affected workers here, the 7,700 figure also includes layoffs elsewhere in the country for these companies.
There’s only one solution–boycott ketchup. It’s the only way to stand with American workers. Which side are you on?