Kraft Heinz Cutting 2,500 Jobs After Merger
Kraft Heinz Co. said it is cutting 2,500 jobs in North America, which accounts for about 5 percent of its global workforce, located in the United States and Canada.
Spokesman Michael Mullen says affected workers are in the United States and Canada and were to be notified in person, according to the AP. About 700 of the cuts were coming in Northfield, Ill., where Kraft had been headquartered. The Kraft Heinz Co. said it had a total of around 46,600 employees before the cuts. That included about 1,900 in Northfield. In a statement (August 12, 2015), Mullen said the job cuts are part of the company's process of integrating the two businesses and "designing our new organization."
This wasn't unexpected, as H.J. Heinz Company bought Kraft Foods Group, Inc. to create The Kraft Heinz Company, forming the third largest food and beverage company in North America in March.
"Human resource churn," says Lora Cecere, Founder, Supply Chain Insights.
"This move is happening at a time when supply chain talent that is knowledgeable in building value networks is at an industry low. Supply chain management is 30-years old, and many of the first and second generation of supply chain pioneers have left the industry," Cecere says. "This is particularly true at Kraft where employee churn due to early retirement packages has been high. My concern is that the redesign of networks that are feasible requires knowledge which I feel is scarce today. What looks good on paper, based on average rates, is often very different in reality. Companies need to ensure that the redesign of these large supply networks is based on both optimization and simulation to test feasibility."
For more on this see here.
Spokesman Michael Mullen says affected workers are in the United States and Canada and were to be notified in person, according to the AP. About 700 of the cuts were coming in Northfield, Ill., where Kraft had been headquartered. The Kraft Heinz Co. said it had a total of around 46,600 employees before the cuts. That included about 1,900 in Northfield. In a statement (August 12, 2015), Mullen said the job cuts are part of the company's process of integrating the two businesses and "designing our new organization."
This wasn't unexpected, as H.J. Heinz Company bought Kraft Foods Group, Inc. to create The Kraft Heinz Company, forming the third largest food and beverage company in North America in March.
"Human resource churn," says Lora Cecere, Founder, Supply Chain Insights.
"This move is happening at a time when supply chain talent that is knowledgeable in building value networks is at an industry low. Supply chain management is 30-years old, and many of the first and second generation of supply chain pioneers have left the industry," Cecere says. "This is particularly true at Kraft where employee churn due to early retirement packages has been high. My concern is that the redesign of networks that are feasible requires knowledge which I feel is scarce today. What looks good on paper, based on average rates, is often very different in reality. Companies need to ensure that the redesign of these large supply networks is based on both optimization and simulation to test feasibility."
For more on this see here.