Kraft Heinz to shut 7 plants and cut 2600 jobs

After the facilities close, Kraft Heinz will have 41 plants in North America that employ about 18,000 people. Kraft will match the investment with $20 million of its own money earmarked for investments in the three New York factories.

“Kraft Heinz fully appreciates and regrets the impact our decision will have on employees, their families and the communities in which these facilities are located”, Michael Mullen, a senior vice president, said in a statement.

Oscar Mayer’s parent company, Heinz Kraft, announced Wednesday that the plant will close.

Additionally, Kraft-Heinz will defer its planned closure of the Campbell plant for a period of 12-24 months, during which time the company will work with state, federal and local officials in an effort to identify a new operator who would retain the plant’s existing employment.

The company, co-headquartered in Chicago and Pittsburgh, was formed from the merger of Kraft and Heinz earlier this year. It also makes on-demand coffee products for Keurig and Tassimo products. It includes $1.75 million in tax credits and a $3 million forgivable loan. The other six plants slated for closure are in Fullerton and San Leandro, Calif.; Federalsburg, Md.; Ontario, Canada; Campbell, New York; and Madison, Wisc. She said a team was being put together to survey workers’ skills and needs, and would also work with the many vendors that supply the plant.

Kraft completed its merger with H.J. Heinz in July, creating the third-largest food and beverage company in North America.

In August, the cuts began with the company announcing it would cut about 2,500 salaried jobs, including 700 in Northfield, Ill.

Heinz was backed by Brazilian private equity firm 3G Capital, which has a reputation for finding ways to trim the fat at companies, including Heinz itself and Anheuser-Busch InBev. And, on Wednesday, the cuts moved to manufacturing, chopping the Upper Macungie plant that benefited from $200,000 in state funds.

The plant closing was expected to be a two-year process, with production workers likely leaving in three waves of layoffs, Soglin said. “I thank Senator Schumer and Kraft-Heinz for working with us to protect jobs in these communities and help ensure the future of each of these plants”.