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Old 09-01-2015, 06:50 AM
 
5,802 posts, read 9,894,970 times
Reputation: 3051

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It's Bain Capital, typical Venture Capitalism....
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Old 09-01-2015, 07:11 AM
 
Location: Pittsburgh/Anchorage
369 posts, read 463,000 times
Reputation: 361
Quote:
Originally Posted by Blackbeauty212 View Post
Again, just as this article points out... It WILL come down to who ponys up the Corporate Welfare....
If you actually read the article....

"The original discussion about Kraft moving downtown took place in late 2012 or early 2013, shortly after legendary food company Kraft Foods Group split from Mondelez International. Both then were based in the north suburbs, but Kraft's board seriously considered moving downtown—part of the rush in which companies like Motorola Mobility, Gogo, United Airlines and Sara Lee spinoff Hillshire Brands reversed the paradigm of the 1970s and '80s, realizing that the city is the better location to attract young talent and remain vibrant."



"On the table at one point were possible state and city incentives to bring the company downtown.
The state's role ended early as incoming Gov. Bruce Rauner put a hold on big new Edge tax credits. What one insider termed "potential" city credits continued to be discussed a little longer until Kraft Heinz instead decided to locate in the Aon Center rather than within a tax-increment financing district. I'm told job-training incentives could have been made available, but the argument that the value wasn't worth the bad publicity associated with accepting subsidies ended up winning the day."




So if anything, "corporate welfare" has had nothing to do with it so far. Having said that, this story is far from over. But to suggest air service will not be one of major factors in determining where such a large global corporation calls home when the dust settles is nonsense.
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Old 09-01-2015, 07:37 AM
 
Location: Pittsburgh (via Chicago, via Pittsburgh)
3,887 posts, read 5,520,768 times
Reputation: 3107
Quote:
Originally Posted by Geeo View Post
You have to hand it to the geniuses at 3G and Berkshire. They have billions to buy and sell companies like trading stamps, eliminate jobs below the bone, have employees work together at picnic tables, and they still have the chutzpah to know that they can get government handouts on top of it all! I've never seen a more entitled bunch.
welcome to corporate america.
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Old 09-01-2015, 12:26 PM
 
5,802 posts, read 9,894,970 times
Reputation: 3051
Quote:
Originally Posted by PITairport View Post
If you actually read the article....

"The original discussion about Kraft moving downtown took place in late 2012 or early 2013, shortly after legendary food company Kraft Foods Group split from Mondelez International. Both then were based in the north suburbs, but Kraft's board seriously considered moving downtown—part of the rush in which companies like Motorola Mobility, Gogo, United Airlines and Sara Lee spinoff Hillshire Brands reversed the paradigm of the 1970s and '80s, realizing that the city is the better location to attract young talent and remain vibrant."



"On the table at one point were possible state and city incentives to bring the company downtown.
The state's role ended early as incoming Gov. Bruce Rauner put a hold on big new Edge tax credits. What one insider termed "potential" city credits continued to be discussed a little longer until Kraft Heinz instead decided to locate in the Aon Center rather than within a tax-increment financing district. I'm told job-training incentives could have been made available, but the argument that the value wasn't worth the bad publicity associated with accepting subsidies ended up winning the day."




So if anything, "corporate welfare" has had nothing to do with it so far. Having said that, this story is far from over. But to suggest air service will not be one of major factors in determining where such a large global corporation calls home when the dust settles is nonsense.
Let's not act like KH move to Downtown Chicago was somehow looked at a net increase..... It's a considerable downsize from the Kraftown location, larger than the reduction Heinz performed here. This downsizing here is probably nothing more than getting rid of Duplication. Remember KH is also MOVING jobs from Chicago to Pittsburgh.

I may have misread the article, and I will stand corrected on that ... I still stand by my original statement, Corporate Welfare will have more to do with this transaction of HQ, than the Airports.

Why do I get the feeling some of you are Rooting for Heinz HQ to go to Chicago? Just to prove your point of Airport size, and that the Burgh can't compete?

If it all came down to Airports, going by your guys logic, Pittsburgh wouldn't be HQ to any F500 company...
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Old 09-01-2015, 01:29 PM
 
5,894 posts, read 6,881,857 times
Reputation: 4107
Quote:
Originally Posted by Blackbeauty212 View Post
Let's not act like KH move to Downtown Chicago was somehow looked at a net increase..... It's a considerable downsize from the Kraftown location, larger than the reduction Heinz performed here. This downsizing here is probably nothing more than getting rid of Duplication. Remember KH is also MOVING jobs from Chicago to Pittsburgh.

I may have misread the article, and I will stand corrected on that ... I still stand by my original statement, Corporate Welfare will have more to do with this transaction of HQ, than the Airports.

Why do I get the feeling some of you are Rooting for Heinz HQ to go to Chicago? Just to prove your point of Airport size, and that the Burgh can't compete?

If it all came down to Airports, going by your guys logic, Pittsburgh wouldn't be HQ to any F500 company...
While I very much hope they stay in pittsburgh more potential bad news in that Heinz/Kraft just put out a notice they are looking for a subleasee to take over the 32nd floor in the PPG building reducing their current space from 95,000 sqft to 47,000 that's in addition to the 100,000sq ft they recently put up for sublease at the Heinz 57 Center (which they no longer have any offices in).

The lease they just signed in Chicago is good through 2029.

Last edited by UKyank; 09-01-2015 at 01:38 PM..
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Old 09-01-2015, 01:55 PM
 
831 posts, read 878,781 times
Reputation: 676
I wonder if they'll keep their R&D in Warrendale/Cranberry?
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Old 09-01-2015, 02:13 PM
 
Location: Pittsburgh/Anchorage
369 posts, read 463,000 times
Reputation: 361
Quote:
Originally Posted by Blackbeauty212 View Post
Let's not act like KH move to Downtown Chicago was somehow looked at a net increase..... It's a considerable downsize from the Kraftown location, larger than the reduction Heinz performed here.
No one portrayed it as a net increase. Also, its not a larger reduction than what we experienced here when looked at in terms of a percentage decrease. In Chicago they went from 700,000 sq ft to 170,000 sq feet - 1/4 of their previous space. In Pittsburgh they went from 300,000+ sq ft to just 47,000 sq ft - less than 1/6 of their previous space. In absolute terms you are correct that they gave up more overall space in Chicago, but as UKyank pointed out the fact that they signed a new lease in Chicago when they had a glut of space speaks volumes.

Quote:
Why do I get the feeling some of you are Rooting for Heinz HQ to go to Chicago? Just to prove your point of Airport size, and that the Burgh can't compete?

If it all came down to Airports, going by your guys logic, Pittsburgh wouldn't be HQ to any F500 company..
No one is rooting for Heinz to leave and I would love to be wrong on this.

Regarding your last point, its not that black and white. Every company is different and has different priorities, but lets not diminish the importance of ease of access. Lets face it, Pittsburgh does not have a good track record when it comes to keeping headquarters after a merger. Westinghouse acquired CBS, changed its name to CBS and moved to New York (Westinghouse Electric was spun off); Mellon and BNY merged and had a "dual headquarters".... for a short time until NYC became the hq, ALCOA moved even without a merger of acquisition. Ease of access and air service often cited.
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Old 11-04-2015, 05:15 PM
 
255 posts, read 284,736 times
Reputation: 162
Kraft Heinz to close seven plants, cut 2,600 jobs
http://finance.yahoo.com/news/kraft-...204609114.html
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Old 05-10-2016, 12:40 PM
 
271 posts, read 332,106 times
Reputation: 324
Quote:
Originally Posted by TechCom View Post
Kraft Heinz to close seven plants, cut 2,600 jobs
http://finance.yahoo.com/news/kraft-...204609114.html
Let the job losses begin in Pittsburgh -- great to hear we're keeping Indian workers employed though (http://www.post-gazette.com/business...201605100036):

Quote:
Even before the Kraft Foods Group merged with the H.J. Heinz Co. last summer, Kraft was shifting some services — and jobs — to a third-party operator.

That process continued under new management and will eliminate about 40 jobs at the new Kraft Heinz Co.’s Pittsburgh operation in June, according to a company spokesman.

“Over two years ago, Kraft began moving shared services jobs in accounts payable and other customer service functions to a third-party partner with roles based in Wilkes-Barre, Pa., or India,” said Michael Mullen, senior vice president, corporate and government affairs, in response to a query about the shift.

Mr. Mullen said Kraft Heinz is now standardizing that model across the merged food company, which is co-headquartered in Chicago and Pittsburgh.

“As part of this transition, we’ve created a centralized master data function located in Pittsburgh,” he said. “The result is a net impact of approximately 40 employees in Pittsburgh exiting the company in June.”
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Old 05-10-2016, 12:53 PM
 
Location: Marshall-Shadeland, Pittsburgh, PA
32,616 posts, read 77,608,316 times
Reputation: 19101
Kraft Heinz layoffs. EDMC layoffs. GNC in trouble. U.S. Steel in trouble. ALCOA in trouble. Kennametal in trouble. Natural gas drillers in trouble. Any GOOD news on the job front lately for Pittsburgh? Don't say UBER, Google, Facebook, or Apple, either, since most typical Pittsburghers don't have much of a shot at most of those jobs.
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