Kraft Heinz (KHC) Cost Cuts Begin as New Entity Gets Underway

Kraft is cutting down on some employee freebies following its merger with Heinz.

According to Bloomberg, The Kraft Heinz Company (Nasdaq: KHC) is cutting down on some expenses as it looks to move forward on the right foot as a combined company. An internal memo states that Kraft has trimmed expenses like travel, office supplies, and electricity, while also pulling free snacks for employees.

One spokesperson for Kraft Heinz commented, The provisions we recently shared across our business -- such as leveraging technology and ensuring the judicious use of outside resources -- are consistent with many practices already in place [...] These provisions reflect our drive for increased accountability and efficiency that will enable reinvestment in our people, products and brands.

CEO Bernardo Hees is looking to save about $1.5 billion in annual costs over the next two years.

Kraft Heinz shares are up 2 percent.

You May Also Be Interested In

• Ensign Group expands credit facility to $800M, extends to 2031
• FS Bancorp completes acquisition of Pacific West Bancorp
• Leggett & Platt shareholders approve merger with Somnigroup