Pittsburgh, Pa. — Kraft Heinz announced it is halting its plans to split into two separate entities, reversing a decision made just over a year ago. The move comes as the company’s new CEO, Steve Cahillane, aims to refocus efforts on addressing financial challenges and enhancing profitability.

Cahillane, who took over leadership in December, emphasized that the primary goal is to restore the company’s growth trajectory. In a recent statement, he expressed confidence that many of the operational issues can be remedied. “My focus is on ensuring all resources are directed toward executing our operational plan,” he said, indicating that the decision to pause the breakup is designed to eliminate further financial strain related to the separation.

The announcement has already impacted the company’s stock, with shares dropping about 7% in premarket trading. As part of its turnaround strategy, Kraft Heinz has committed to investing $600 million to bolster its U.S. operations, targeting improvements in marketing and research and development, as well as enhancing product quality and competitive pricing.

The company’s earlier plan to separate was viewed as a significant shift from the 2015 merger that formed Kraft Heinz, valued at $46 billion. This merger, backed by key investor Warren Buffett, initially drew enthusiasm from investors. However, over the years, the combined company has seen declining sales and faced challenges with several notable brands, such as Oscar Mayer and Maxwell House.

Buffett has publicly acknowledged his disappointment with the recent decision to reverse the separation plans, and Berkshire Hathaway, his investment firm, is reportedly moving to reduce its stake in Kraft Heinz. This shift reflects growing concerns about the overall performance of the conglomerate.

Kraft Heinz has been actively working to turn around its U.S. business over the past six years, after experiencing setbacks following the merger. The company’s latest quarterly earnings report surpassed Wall Street’s expectations, although total revenue fell short of predictions, highlighting the ongoing challenges it faces.

As Cahillane leads the company, his previous experience—having successfully guided Kellogg through a similar split—has prompted optimism among some analysts. The focus now rests on implementing effective strategies to strengthen the brand and enhance its market presence in the competitive food industry.

Kraft Heinz will need to prove that it can address its operational issues effectively while keeping investor confidence intact as it seeks to navigate this critical period in its corporate history.