Dive Summary:
- According to a 10-Q filed Wednesday with the U.S. Securities and Exchange Commission, H.J. Heinz Co. expects the 1,200 jobs cut globally to result in annual savings of around $150 million.
- The severance-related expenses accompanying the cuts are expected to cost the company an estimated $160 million, with "certain former executives" receiving a total of around $90 million in severance and compensation.
- The company was purchased by Berkshire Hathaway and 3G Capital for $28 billion (including the amount of debt taken on) at the beginning of June, resulting in the replacement of 11 top executives, 600 job cuts in its U.S. and Canadian operations and hundreds more worldwide.
From the article:
... Heinz reports they are "undertaking the restructuring as part of its ongoing cost reduction efforts with the goal of driving efficiencies and creating fiscal resources that will be reinvested into the company's business." As of April 28, the end of its fiscal year, the company employed about 31,900 people worldwide. ...