Kraft Heinz to close 7 plants in US, Canada, cut 2,600 jobs

IOWA CITY, Iowa (AP) — Kraft Heinz will close seven plants in the U.S. and Canada as part of a downsizing that will eliminate 2,600 jobs, or roughly 14 percent of its North American factory workforce, the newly merged food company announced Wednesday.

Among the hardest hit cities will be Madison, Wisconsin, where a nearly century-old Oscar Mayer plant that employs 700 production workers will close.

The plants make a range of products, including cold cuts, salad dressing, macaroni and coffee.

The company also will shift meat production from its Oscar Mayer plant in Davenport, Iowa, to a planned $203 million plant that will be built several miles away.

The Iowa Economic Development Authority will meet Thursday to consider approving a package that includes $1.75 million in tax benefits for the new plant and a $3 million forgivable loan to the company to demolish the old one.

"Kraft Heinz fully appreciates and regrets the impact our decision will have on employees, their families and the communities in which these facilities are located," Michael Mullen, a senior vice president, said in a statement.