NORTHFIELD, Ill. — Kraft Heinz says is cutting about 2,500 jobs as part of its plan to slash costs after the food companies combined.
The combination of Heinz and Kraft earlier this year was engineered by Warren Buffett's Berkshire Hathaway and Brazilian investment firm 3G Capital, which has become known for its tight cost controls.
The company says it has a total of around 46,600 employees. Spokesman Michael Mullen says affected workers are in the U.S. and Canada and were to be notified in person. About 700 of the cuts were coming at Kraft's Northfield, Illinois, headquarters.
People who spoke with WGN today say it is a real shock to individuals and the community. The news follows an earlier announcement that Northfield workers will shift to the AON building in downtown Chicago.
Kraft issued a statement that reads in part:
"We appreciate the many contributions our colleagues have made to our Company, and we are committed to treating all impacted individuals with the utmost respect and dignity throughout this process. We regret the impact this has on employees and their families. The Company is offering generous severance benefits with a minimum of six months and outplacement services to make this transition as smooth as possible, and to help impacted employees pursue new career opportunities. These necessary actions will better position the Company for future growth. Furthermore, these efforts position our Company to realize substantial synergies that will drive savings to be reinvested in our brands and products.”