[5/4/17] Kraft Heinz will cut 5,150 jobs and close six factories, laying off 13 percent of its workforce, in a bid to further cut costs at one of the world’s largest packaged food companies.
The decision is the latest in a series of aggressive cost-cutting maneuvers by the company, which merged in 2015 amid pledged to make both brands more efficient.
The company announced the cuts a day after it failed to meet analysts’ revenue and earning projections for the first quarter of 2017. Company executives blamed slumping consumption for falling short of expectations for a fourth time in the last five quarters.
Analysts told Bloomberg Kraft Heinz needed to continue expanding its brand offerings to grow revenue in a difficult market for packaged foods. The company’s bid to buy European company Unilever failed after Unilever executives feared a “culture clash” between its socially conscious brands and the reputation Kraft Heinz has developed for deep cost cutting.