Kraft Heinz plans company split; Construction spending declines; Monthly CEO exits head lower

Kraft Heinz Co. plans to split into two separate companies a decade after a high-profile merger, as one of the world’s largest food makers joins other firms responding to slowing sales and shifting consumer tastes.

Company executives Tuesday announced plans to create two entities still to be formally named, taking effect in the second half of 2026. One will be focused on Heinz sauces and shelf-stable meals like Kraft Mac & Cheese, with another concentrated on brands like Oscar Mayer meats and Lunchables. Officials said the separation is expected to allow both entities to “reduce operational complexity” while retaining financial flexibility.

“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” Miguel Patricio, executive chair of the board for Kraft Heinz, said in a statement from the company.

With dual headquarters in Chicago and Pittsburgh, Kraft Heinz currently operates from 59 industrial and office locations worldwide, spanning about 15 million square feet, according to CoStar data and public filings. The company employs about 36,000 workers and reported $25.8 billion in 2024 sales.

Other high-profile food industry splits have included Unilever’s plans to spin off its ice cream division, with brands like Ben & Jerry’s, into a separate company later this year; and the 2023 split of Kellogg’s cereal and snack businesses, now in the process of being acquired by Ferrero and Mars, respectively. 

U.S. construction project spending continued a slowing trend of 2025, with July’s figure of around $2.1 trillion falling 0.1% short of the prior month and dropping 2.8% from a year earlier, according to seasonally adjusted annual figures from the Commerce Department. Spending for the first seven months of 2025 was down 2.2% from the year-earlier period.

Within private construction, the residential category rose 0.1% from the previous month, while nonresidential project spending declined 0.5%, the government reported Tuesday. Compared with a year earlier, declines ranged from 2% for lodging projects to 6.6% for manufacturing facilities and 8.2% for the retail and warehouse category.

July’s slight gains for single-family homebuilding were offset by declines for multifamily projects and several nonresidential categories. The Associated General Contractors of America said 16% of contractors surveyed by the trade group reported projects being canceled, postponed or scaled back because of developers’ concerns over trade tariffs. Some 45% reported July project delays caused by labor shortages. 

July’s U.S. departures of chief executive officers totaled 123, the lowest monthly tally since May 2024, falling 41% from the prior month and dropping 17% from a year earlier. Still, a challenging economy brought the total number of turnovers for the first seven months of 2025 to 1,358, about 9% above the same period of 2024, according to the latest data from Challenger, Gray & Christmas.

“CEO turnover continues to climb in 2025, reflecting the immense pressures leaders face in navigating economic uncertainty, rapid technological change, and shifting organizational priorities,” Andrew Challenger, senior vice president of the outplacement firm, said in a statement. “We’re seeing companies recalibrate leadership faster than ever, with boards demanding adaptability and fresh perspective at the very top.”

Real estate companies posted relatively few CEO exits at 24 year-to-date, down from 28 a year earlier. Departures were much higher for the first seven months of 2025 in categories including government-nonprofits at 286, technology at 149 and healthcare at 133.