Heinz Layoffs: 600 Jobs Cut in US and Canada
H. J. Heinz Co. announced layoffs in the U.S. and Canada Tuesday, according to UPI. The layoffs will cut 600 office jobs. 350 of these jobs are in Pittsburgh -- a third of the company's local workforce. The company's Pittsburgh headquarters will be retaining the rest of the 800 workers out of the 1,200 previously employed says Trib Live.
"As part of our transition to a private company, the senior leadership team has examined every piece of our business to better position Heinz for accelerated growth in a very competitive global market," said Michael Mullen in a report by UPI. Mullen is Heinz' Senior Vice President of Corporate and Government Affairs and spokesperson. Along with the company's new executives and new owners, he sees the layoffs as a way for the company to improve efficiency, says the Examiner.
The company is also planning to leave Heinz 57 Center by the end of the year says Chuck Perlow, a partner of McKnight Realty Partners. McKnight Realty Partners is the owner of Heinz 57 Center in Pittsburgh. Mullen however, denied the allegation saying that Heinz "expects to maintain a presence at the 57 Center and sublease the rest of the space," in a report by Trib Live.
According to ABC News, the company was sold for $23.3 billion in June. The new owners are Warren Buffet's Berkshire Hathaway and the Brazilian investment firm 3G Capital. The company still has debts amounting to $14 billion according to the Examiner. Fortunately, the new owners are "known for slimming down companies they take over and retooling operations to improve performance and boost profits," says Trib Live.
Mullen said that the company regrets the impacts the layoffs has on Heinz employees and their families. In return, the company is offering enhanced severance packages and outplacement services to all 600 persons affected.
The layoffs and new owners are not the only changes in the company. Heinz also has a new CEO, Bernardo Vieira Hees. Hees was named CEO of the company Jun. 10 and has been a partner of 3G Capital since Jul. 2010, says Business Week. He is also the former CEO of Burger King Worldwide Inc. Hees replaced Heinz' former CEO, William Johnson.