Kraft Heinz pauses work to split the company as new CEO says 'challenges are fixable'

In this articleKraft Heinz on Wednesday said it is pausing work on its previously announced plans to split the company. CEO Steve Cahillane, who joined Kraft Heinz in January, said in a statement that many of the company's issues are "fixable and within our control.""My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan," he said. "As a result, we believe it is prudent to pause work related to the separation and we will no longer incur related dis-synergies this year."Shares of the company fell roughly 2% in early trading.Kraft Heinz also plans to invest $600 million to fuel a turnaround of its U.S. business. The company plans to spend the money on its marketing, sales, and research and development. The investment will also go toward "product superiority and select pricing," according to Cahillane.In September, the company announced plans to break up, reversing much of the blockbuster $46 billion merger from a decade ago that created one of the biggest food companies in the world. While investors originally cheered the merger, the luster faded as the combined company's U.S. sales slipped, and it wrote down many of its iconic brands, like Oscar Mayer and Maxwell House. For at least six years, Kraft Heinz has been in turnaround mode, trying to revive its U.S. business.Warren Buffett, who helped mastermind the deal, said that he was disappointed in the decision to split. Berkshire Hathaway, under new CEO Greg Abel, has since taken a formal step toward unwinding its 28% stake in Kraft Heinz."We support CEO Steve Cahillane and the Kraft Heinz Board of Directors' decision, under Steve's new leadership, to pause work on the company's previously planned separation. As a result, management can commit to strengthening Kraft Heinz's ability to compete and serve customers," Abel said in a statement. Kraft Heinz announced Cahillane's hiring in December. He previously led Kellogg through its own breakup and then headed Kellanova, itself a spinoff, until its sale to Mars. The announcement Wednesday came alongside Kraft Heinz's quarterly earnings release. The company's earnings topped Wall Street's estimates, but its revenue fell short of analysts' projections.Got a confidential news tip? We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services.© 2026 Versant Media, LLC.

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