Dive Brief:
- Kraft Heinz is planning to shut down three former Kraft plants in Avon, Walton, and Campbell, all in upstate New York, which could cost about 950 jobs, according to Crain's sources.
- The factory closures, which could happen as early as next week, are part of the company's cost-cutting efforts, which are an attempt to trim $1.5 billion in spending by 2017.
- "These three New York factories are under close review and an announcement about their future will be communicated in the next week or so," according to a statement from Kraft Heinz spokesman Michael Mullen."When asked if other facilities in other states also are under review, Mullen declined to comment," Crain's reported.
Dive Insight:
It's not surprising that Kraft Heinz would be in this mode following the two companies' merger, as 3G Capital did the same at Heinz when 3G acquired the processed foods company in 2013.
The combined company has seen a number of cost-cutting measures already, including the elimination of 2,500 jobs, 700 of which were from Kraft's original headquarters, which is now moving from Chicago's suburbs to the city center.
Kraft has also cut expenses, such as limiting spending for employees on business travel or no more refrigerators with free snacks.