Buffett-Backed Heinz to Cut 1350 Jobs, Close 3 Plants

Bloomberg November 14, 2013 0

HJ Heinz Co., the ketchup-maker owned by Warren Buffett ’s Berkshire Hathaway Inc.

HJ Heinz Co., the ketchup-maker
owned by Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) and 3G
Capital, said it will fire 1,350 workers as it closes
manufacturing plants in North America.

The company is shuttering facilities in Florence, South
Carolina; Pocatello, Idaho; and Leamington, Ontario, according
to an e-mailed statement today from Michael Mullen, a spokesman
for Pittsburgh-based Heinz.

Heinz has been cutting jobs since Berkshire and 3G took
over in June and installed new managers including Chief
Executive Officer Bernardo Hees. The condiment maker has
grounded corporate planes, unplugged mini-fridges and limited
employee printing in an effort to create savings that can help
pay for the $12.6 billion in borrowing that supported the $23.3
billion takeover.

The plant closures are “a critical step in our plan to
ensure we are operating as efficiently and effectively as
possible,” Mullen said. He said the company is adding 470
employees at other facilities.

Heinz said in August that it was eliminating about 600
office jobs in the U.S. and Canada. It has shut a factory in
China and reduced production at a U.K. facility. Today’s cuts
were reported earlier by the Associated Press.

To contact the reporters on this story:
Zachary Tracer in New York at
ztracer1@bloomberg.net;
Noah Buhayar in New York at
nbuhayar@bloomberg.net

To contact the editor responsible for this story:
Dan Kraut at
dkraut2@bloomberg.net

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Article originally posted in Bloomberg website.

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