HJ Heinz to shut three North American facilities, slash 1,350 jobs

American food company HJ Heinz is set to shut three of its manufacturing facilities in North America, putting 1,350 jobs at risk, as part of its efforts to ensure effective and efficient operations.

The new owners of Heinz, Warren Buffett’s Berkshire Hathaway and private equity firm 3G Capital, are restructuring the company’s operations and have recently eliminated 600 jobs in North America.

In its latest move, the company will close its manufacturing facilities in Florence, South Carolina; Pocatello, Idaho; and Leamington, Ontario, Canada.

About 200 jobs in South Carolina, 410 in Idaho and 740 in Ontario will be affected following the closures.

The decision follows an extensive review of the company’s North American supply chain footprint, capabilities, and capacity utilisation.

It is a critical step in the company’s plan to ensure it is operating as efficiently and effectively as possible to become more competitive in a challenging environment, and to accelerate its future growth, the company noted.

Heinz corporate and government affairs senior vice president Michael Mullen said, "In a staged process over the next six to eight months, production in these locations will shift to other existing factories in the US and Canada."

The company, meanwhile, plans to offer severance benefits, outplacement services and other support to the closure-affected staff, as well as create about 470 jobs at its Ohio, Iowa, California and Canada sites.

Once the consolidation completes, Heinz will employ approximately 6,800 hourly and salaried workers across its sites in the US and Canada.

Earlier this year, Heinz was sold to an investment consortium comprised of Berkshire Hathaway and private equity firm 3G Capital in a $28bn deal.

HJ Heinz is a global company engaged in the production and marketing of foods specialising in ketchup, sauces, meals, soups, snacks and infant nutrition.

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Image: Production at the closure-affected sites will be moved to Heinz’s other facilities in the US and Canada. Photo courtesy of H. J. Heinz Company.