With Kraft Heinz merged, now comes the cutting
Kraft Foods Group shareholders voted Wednesday to approve the company’s sale to H.J. Heinz, a deal that brings together two storied packaged-food companies vying for attention as consumers look for healthier, fresher fare.
About two dozen shareholders attended a 14-minute meeting Wednesday in Chicago, and an overwhelming majority of shares voted in favor of the merger, which is set to close Thursday afternoon and will almost certainly lead to major job cuts.
Kraft Chairman and CEO John Cahill ended the meeting by saying it was “an incredible privilege” to lead the company and looked forward to his role as vice chairman of the new company, which will be known as Kraft Heinz.
More than 98 percent of votes cast were in favor of the transaction, representing over 69 percent of all outstanding Kraft shares, Corporate Secretary Kim Rucker told the small group.
[...] many remain price conscious, putting additional pressure on food companies to trim costs while promoting the value of their brands.
The acquisition may lead to heavy job losses as Kraft and Heinz — which have each already trimmed their ranks in recent years — try to cut $1.5 billion in annual costs.
Kraft has about 2,300 employees in the Chicago area, including those at its headquarters, a suburban research and development facility, and two floors of satellite office space in Chicago.