Kraft Heinz is laying off about 5 percent of its 46,000 employees, the company announced Wednesday. It will cut 2,500 jobs to put thousands out of work, according to Fortune.
The affected workers are all in the U.S. and Canada. This is the first round of layoffs since Heinz purchased 51 percent of Kraft last March in a deal that gives Heinz controlling interest of both companies. Analysts expect more layoffs from the merged companies in the coming months.
Kraft Heinz plans to cut $1.5 billion in costs by 2017, Fortune reported. Other cost-cutting measures have already been put in place for both brand names. Kraft headquarters employees no longer receive free Jell-O, and all workers have been instructed to print on both sides of paper and be sparing with their office supplies.
Kraft Heinz products include Capri Sun, Kool-Aid, Velveeta and Maxwell House. The combined companies reported more than $4.5 billion in revenue in the second quarter of 2015, according to NASDAQ. The second quarter spans a period of three months.
"This new structure eliminates duplication to enable faster decision-making, increased accountability and accelerated growth," a Kraft Heinz spokesperson said, according to The Wall Street Journal.