Warren Buffett has come for the free cheese at Kraft.
A report from Bloomberg’s Noah Buhayar on Thursday said that Kraft has cut down on perks like free employee snacks following its merger with Warren Buffett-owned Heinz.
Bloomberg, citing an internal Kraft memo, said that travel, electricity, and office supply expenses have been shaved following the merger.
Additionally, fridges stocked with Kraft snacks at the company’s Chicago headquarters have been eliminated.
Kraft was acquired by Heinz, which Buffett owns alongside Brazilian private equity firm 3G Capital, back in March as part of a deal that created the 5th-largest food and beverage company in North America.
At the time, we highlighted one word in the merger announcement that should make every Kraft employee nervous: “synergy.”
As Business Insider’s Sam Ro noted, “synergy” is usually code for things like job cuts, cost cuts, and generally stricter management as acquiring companies look to trim costs and “streamline” the organisations they now manage.
In that announcement, the companies said they expected to realise $US1.5 billion in annual savings due to synergies from the merger.
Eliminating snacks is part of how you get there.
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