The newly merged Kraft Heinz Company has announced it will eliminate 2,500 jobs in an effort to cut $1.5 billion in costs.
In an email obtained by CNN Money, Global Communications Chief for Kraft Heinz, Michael Mullen, said the layoffs were being done to "ensure we are operating as efficiently and effectively as possible,” adding that it was a "very difficult, but necessary, decision."
According to Kraft Heinz, the company’s new management team has restructured the company to simplify its operations and leverage its much larger scale, saying, “This new structure eliminates duplication to enable faster decision-making, increased accountability and accelerated growth.”
The Wall Street Journal has reported that 700 of the 2,500 layoffs will occur within its Chicago-area headquarters in Northfield, IL. Kraft originally said it had roughly 2,300 employees at headquarters when it announced plans to merge with Heinz in March, but the company confirmed Wednesday that its latest count had already dwindled down to 1,900.
This news comes on the heels of a less-than-stellar financial report, where both Kraft and Heinz reported declines in sales. Kraft Heinz is controlled by Warren Buffett's Berkshire Hathaway and Brazilian private equity 3G Capital, which first teamed up in 2013 to buy Heinz. Berkshire and 3G collectively hold a 51% stake in Kraft Heinz.
