Global Processing

Heinz to cut 2,700 jobs

June 5, 2006

Food producer H.J. Heinz Co., recently said its fiscal fourth-quarter profit dropped 19 percent, and said it plans to cut 2,700 jobs—or 8 percent of its workforce—and exit 15 plants this year as part of a plan to cut costs and resume earnings growth, according to the Associated Press. Heinz is facing pressure from billionaire investor Nelson Peltz to improve shareholder return. Earlier in the month, Peltz and his Trian Group outlined a plan, which was rejected by Heinz, to improve profit by cutting costs and reducing incentives to retailers. The maker of ketchup, sauces, pasta and frozen foods said profit for the quarter ended May 3 declined to $167.9 million, or 50 cents per share, from $206.5 million, or 59 cents per share during the same period last year.