Kraft Heinz shuts down century-old plant in Wisconsin and 6 others in North America, cuts 2,600 jobs

Kraft Heinz in a cost-cutting and streamlining exercise is closing down seven of its operating plants in North America resulting in the downsizing of its factory employees by 2,600.

Heinz Press Release states Kraft Foods and Heinz Corporation merged into one entity and renamed as Kraft Heinz in July 2015.

Both companies are already iconic food brands but with the merger Kraft Heinz became the third largest in North America and 5th largest food and beverage company in the world with net revenue of $28 billion, owning eight $1 billion brands and five brands valued between $500-$1billion.

Kraft Heinz's senior vice president Michael Mullen in a statement issued to the press on Wednesday said the seven factories affected in North America included two in California and others in Maryland, Ontario, Campbell in New York, Pennslyvania and Madison in Wisconsin.

The operations in these plants will shift to other existing plants in North America over staged process over the next 12-24 months.

Further, Kraft Heinz will move the Oscar Mayer plant - reported to be close to a century old - and the US Meats Business Unit both from Madison, Wisconsin to Kraft Heinz' co-headquarters in Chicago.

The move is expected to bring 250 jobs to the Chicago area and centralize all Kraft Heinz's US Business Units to the co-headquarters of Chicago and Pittsburgh, which is expected to increase collaboration and efficiency.

Mullen stated that the decision to consolidate manufacturing across the Kraft Heinz North America network was a critical step to eliminate excess capacity and reduce operational redundancies for the newly merged company. This move is expected to make Kraft Heinz globally competitive and accelerate future growth.

Michael Mullen described this decision to consolidate as "difficult but necessary but which will reduce the number of factory employees by approximately 2,600 positions".

On a positive note, Kraft Heinz will invest millions in improving and modernizing its current facilities by installing state-of-the-art production lines.

Michael Mullen has promised to treat Kraft Heinz employees with respect and dignity and that affected employees will receive severance benefits, outplacement services, and other support to help them get new jobs.

In the latest development, governor of New York Andrew Cuomo and senator Schumer announced of having reached an agreement with Kraft Heinz to save nearly 1,000 at the Avon, Walton, Lowville and Campbell plants.

The agreement reverses the plan to close the Avon and Walton plants, retain all employees at the Lowville plant and as far as the Campbell plant is concerned Governor Cuomo and Senator Schumer managed to get Kraft Heinz to agree to defer closure of the Campbell plant until a buyer is found for the plant hence saving the 393 jobs at risk there.