Kraft Heinz on Wednesday announced the closure of 7 plants. The company plans to cut 2,600 jobs during its newest restructuring phase.
The closing factories are located in Fullerton, California; San Leandro, California; Federalsburg, Maryland; St. Marys, Ontario, Canada; Campbell, New York; Lehigh Valley, Pennsylvania; and Madison, Wisconsin, Michael Mullen SVP of corporate and government affairs, said in a statement.
Production will stop at those plants in the next 12-24 months. The company will shift production from those plants to other factories located throughout North America.
Mullen says the decision to close the factories came after “an extensive review of the Kraft Heinz North American supply chain footprint, capabilities and capacity utilization.”
The company also plans to shut down its meat process plant in Davenport, Iowa, and move production to a new facility that will be built nearby.
The company plans to invest “hundreds of millions of dollars in improving capacity utilization and modernizing many of our facilities with the installation of state-of-the-art production lines,” Mullen added in his statement.
26.8% of Kraft Heinz is owned by Berkshire Hathaway. Kraft Heinz formed from the merger of Kraft and Heinz this year. The newly created company also announced in August that 2,500 non-factory jobs would be cut following the merger.