 Beanz meanz cuts at Heinz |
Baked beans and ketchup maker Heinz is to cut 8% of its global workforce to free up cash for marketing and developing more than 100 new products. The Pittsburgh-based firm will shed about 2,700 jobs and close 15 factories in 2007 with five more at risk in 2008.
It will also cut $145m (�78m) from what it spends securing premium shelf space and other in-store benefits.
Heinz said four European plants would close with a loss of 600 jobs, but did not disclose which would be affected.
The details of the cutbacks would be reviewed over the next few months and discussed with employees, said Heinz spokesman Michael Mullen.
All job cuts would be fully implemented by April 2007, he added.
The company expects to increase advertising and marketing spend by 18.7% as part of the overhaul.
Growth areas
Heinz has sold off several businesses as it focuses on its ketchups, sauces, meals and snacks and has bought the group behind HP sauce.
Investment group Trian Fund Management is pressurising Heinz to return more money to shareholders, cut costs and give it a representation on the board of directors.
Forecasting a 3% to 4% sales increase in the next year, Heinz said it expected one quarter of its growth would come from Russia, India, China, Poland and Indonesia.
One-Minute World News 
News services
E-mail this to a friend 
Printable version 