Kraft Heinz is unpicking its own history in 2025. Nearly a decade after the $46 billion megamerger that married ketchup with macaroni and cheese, the food giant has announced plans to split into two independent companies. This decision to split Kraft Heinz marks an exciting retreat from consolidation that may upheave the giant’s corporate structure.
For Kraft Heinz employees, the implication of the upcoming split is far more nuanced than the headlines suggest. While the 2015 corporate consolidation delivered efficiencies at the expense of thousands of jobs, this separation is now being framed as an opportunity to streamline operations.
For Kraft Heinz employees, the implication of the upcoming split is far more nuanced than the headlines suggest.(Image: Pexels)
A reversal of fortune
The Kraft Heinz merger, championed by Warren Buffet’s Berkshire Hathaway and Brazilian investor 3G Capital, was billed as a marriage of iconic brands, Heinz ketchup, Kraft Mac & Cheese, Oscar Mayer. Unfortunately, it arrived with years of cost-cutting, a bruising 2019 accounting scandal, and persistent cultural clashes.
The upcoming Kraft Heinz split, however, is now an opportunity for the two brands to survive.
Two new companies emerge from Kraft Heinz split
Under the Kraft Heinz split, there will be:
A North American grocery brand built around everyday staples such as cheese, meats and ready meals.
A global taste elevation company focused on condiments, snacks and sauces with international reach.
Carlos Abrams-Rivera will continue to serve as CEO of Kraft Heinz and will become CEO of “North American Grocery Co.” upon completion of the separation. The Board has been working with a nationally recognized global executive search firm to identify potential CEO candidates for “Global Taste Elevation Co.” Kraft Heinz has no plans to change its current headquarter locations. The Kraft Heinz split is expected to be completed in late 2026 and is expected to reduce corporate complexity.
What does the Kraft Heinz split mean for employees?
For Kraft Heinz’s 36,000 employees, the upcoming split has been framed as an exciting opportunity. The company has pledged to operate as “one Kraft Heinz” during this unique transition phase. Unlike the merger’s efficiency drive that lasted years and cut roughly 2,500 jobs, the split plans to avoid layoffs. The emphasis will be on more focused roles, internal mobility and recognition of top performers.
It is being surmised that the upcoming Kraft Heinz split could create several promotion opportunities. Furthermore, corporate initiatives such as the LiveWell wellbeing program and diversity targets are expected to continue. Analysts caution that layoffs may be a part of adjustments despite initial reassurances. The most recent being Kellogg, which split last year, and announced workforce reductions soon after.
What’s in store for Kraft Heinz employees?
For employees, the split promises clarification of mission and greater scope to innovate. It could be the ultimate test of whether specialization can succeed where scale failed. The market reaction towards the upcoming Kraft Heinz split has been skeptical so far. Now that the companies are putting its people at the center of transition, it becomes more important than ever to bet on talent for the next chapter.
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