Heinz cuts 45 jobs at British factory
H.J. Heinz Co. is cutting 45 jobs at a factory in the United Kingdom, part of a wider review of efficiency by the Pittsburgh ketchup maker.
Heinz said the jobs will be lost because it is transferring the production of infant milk formula for the Chinese market to a plant in New Zealand.
“Supplying infant milks from the UK to Heinz markets in Asia and the Far East is increasingly uncompetitive and is not efficient or sustainable in the long term,” the company said in a written statement.
The move by Heinz comes less than a week after the company was acquired by investment firm 3G Capital and Warren Buffett's Berkshire Hathaway in a $28 billion deal.
3G, which is known for aggressive cost-cutting at the companies it buys, is taking the lead in running Heinz and has already installed two of its partners at the top of the company. When the buyout closed on June 7, former Burger King CEO Bernardo Hees became Heinz CEO, and Paulo Bastilio was named chief financial officer.
Hees and 3G have declined to discuss their plans for Heinz. Spokesman Michael Mullen said the layoffs at the UK plant, which is in Kendal in northern England, are not related to 3G taking over the company.
Mullen also declined to comment on a report by the New York Post that said 3G would look to cut costs at Heinz by getting rid of the company's fleet of corporate jets. The Post, relying on unnamed sources for its story, said 3G made the same move at Burger King when it bought the fast-food chain in 2010.
Gemma Hart, a spokeswoman for 3G, declined to comment.
Heinz owns four Gulfstream jets, according to Federal Aviation Administration records.
The 45 jobs that will be cut at the UK plant account for about a quarter of the 170 people who are employed at the Kendal plant.
Production of infant milk for China will be contracted out to Fonterra, a New Zealand-based company, Heinz said.
“We deeply regret having to consider transferring production of our Chinese infant milks to New Zealand,” Itziar Albisu, vice president of global infant and nutrition supply chain said in the Heinz statement. “We regret having to make this proposal, but it has only been made after careful consideration of all possible alternatives.”
Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or email@example.com.
Add Alex Nixon to your Google+ circles.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Alcoa putting $60M into Upper Burrell tech center expansion
- Fifth Third Bank selling Pittsburgh branches to First National
- Just Mayo has egg industry in a panic, emails show
- Pa. business interests decry EPA ozone proposal as economic albatross
- Stock indexes enter correction territory; bear market could be lurking
- Consumer Financial Protection Bureau gives alternative to customer service frustrations
- Housing bright spot as Beige Book survey shows Pittsburgh region’s growth slight
- PPG’s new CEO to push organic growth with existing clients
- ModCloth gets physical
- U.S. stocks bounce back from precipitous drop
- Steady hiring pace increases odds of Fed action