Heinz Layoffs (Pittsburgh, Warren, Wall: taxi, legally, to eat)

[UKyank]

New Heinz owners cut 600 jobs -- including 350 in Pittsburgh - Pittsburgh Post-Gazette

Changes are to be expected whenever new owners take over any company but I had hoped for a smaller & a bit less immediate impact then a 10% across the country workforce cut (and a 30%+ layoffs in Pittsburgh).

So much for going private & not being beholden to shareholder profits being better for the workers.

[AaronPGH]

Well, they didn't waste any time.

[Blackbeauty212]

Bain Capital anyone. Unreal.

All these Wall Street Billionaires think just a like - Buffet, Romney, Bloomberg. It's sickening, the deck is definitely stacked against the Poor aka "Middle Class".

For these Corporations its all about Profits and how to make more and more and more.... NOTHING ELSE MATTERS! Employees are an expense/liability not assets.

[Geeo]

Looks like they're going to try and squeeze every drop of out of the company, cut expenses and the workforce to the bone, get the profits high, then sell it.

[MathmanMathman]

Not sure what sort of strategy they could be thinking of. Heinz is already king of ketchup with a 60% market share. Hunt's was killing itself tying to eat into Heinz's share for years and years and to no avail. Heinz owns the leading worchestershire sauce so what's next to conquer? Mustard? Salsa? Hot Sauce?

Supposedly part of the deal was that Heinz stays in Pittsburgh but I'm not sure if that is legally binding and for how long?

[MathmanMathman]

Originally Posted by Geeo

Looks like they're going to try and squeeze every drop of out of the company, cut expenses and the workforce to the bone, get the profits high, then sell it.

I doubt it. Berkshire Hathaway is a long term investor. They don't generally flip companies.

[Copanut]

I have a feeling one that was laid off was my neighbor. The company that bought them out was already making changes, sad, another truly American firm taken over.

[greg42]

Ugh. We shouldn't be surprised really but it does seem like a LOT compared to how many people they have at present. How could they really not need all those people, or if they didn't, how could they still all be there? So foreign to me, but I guess it happens in such a large organization....

[trackstar13]

I thought rich people were "Job Creators." I guess maybe we are taxing Warren Buffett too much or something.

[greg42]

Originally Posted by MathmanMathman

I doubt it. Berkshire Hathaway is a long term investor. They don't generally flip companies.

I think part of the problem is it's only half Berkshire. I thought that too. Buffet typically buys and holds. But 3G has the reins in this deal, not Berkshire. One would think that for them to work together as 50-50 the philosophies would be similar, but they might not be.