US: Heinz cuts continue with three plants facing axe
Private-equity firm 3G Capital and Warren Buffett's Berkshire Hathaway acquired Heinz earlier this year
Heinz is to close three plants in North America as the changes at the ketchup giant continue under its new private-equity owners.
The US food giant will shut two factories in the US and one in Canada. Some 1,350 staff at the sites in South Carolina, Indiana and Ontario will lose their jobs.
The move comes three months after Heinz announced plans to lay off 600 staff across the US and Canada - with over half of those cuts at its HQ in Pittsburgh.
This summer, Heinz also outlined plans to streamline its operations in the UK and Ireland, which was set to see 248 office jobs cut.
A spokesperson for Heinz said the plant closures in the US were "critical" for the business.
"Our decision to consolidate manufacturing across North America is a critical step in our plan to ensure we are operating as efficiently and effectively as possible to become more competitive in a challenging environment, and to accelerate the company's future growth," he said.
Over the next eight months, production from the sites in Florence, Pocatello and Leamington will move to other Heinz plants in North America.
The spokesperson pointed out Heinz plans to invest further in five plants in Ohio, Iowa, California and Canada, spending that would lead to 470 employees being created.
Earlier this year, private-equity firm 3G Capital and Warren Buffett's Berkshire Hathaway acquired Heinz in a deal purported to be the largest ever takeover in the food sector.
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