Kraft Heinz Co. is preparing to close seven of its North American plants, which will mean cutting 2,600 jobs. The plan comes on the heels of the recent merger between the two companies, as they look to cut costs and increase production efficiency.

The Wall Street Journal reports that a spokesperson for the company says the move will allow Kraft Heinz to be more globally competitive, and aid in its growth. The companies merged in July, as H.J Heinz Co. acquired Kraft Group, Inc. Kraft was already preparing its own layoffs, on a corporate level. The production facilities were anticipated to receive cuts, as well.

Plants in California, Maryland, New York, Pennsylvania, Wisconsin, and Canada affected by the cuts will have their production shifted to other North American facilities. The process is expected to take a year or two. In 2016, Kraft Heinz plans to move Oscar Meyer to the headquarters in Chicago, from its current location in Madison, Wisconsin.

A spokesperson for the company called the decision “difficult, but necessary.” The cuts are expected to allow Kraft Heinz to invest millions of dollars into creating modern, state-of-the-art production facilities for its plants.

Shares in Kraft Heinz dropped 0.6 percent, Wednesday afternoon.