Heinz to restructure marketing operation and make job cuts

Heinz will announce a significant marketing restructure and a number of redundancies across the company today (Wednesday). The plans have already led to the departure of vice-president of quick serve meals Paul Kaye, who has left the company by mutual consent.

The changes form a key part of the review being carried out by Heinz UK and Ireland managing director Jane Miller following the company’s &£470m acquisition of HP Foods earlier this year. Miller has already ordered a freeze on its &£25m advertising budget for the foreseeable future (MW July 21).

Heinz will announce plans to create a marketing council, headed by Miller. The council is expected to be organised according to categories although it is not clear which marketers will be appointed to it. Miller is reviewing marketing in all categories. Future ad spend will be allocated according to “big ideas” put forward by category marketers.

It is also understood that job cuts will be announced, with a majority of redundancies in administrative areas such as IT and purchasing. Industry insiders say they expect a number of jobs to go as part of the marketing restructure.

Kaye, who joined the company a year ago (MW September 24, 2004), was recently given responsibility for overseeing the marketing and sales services team. But it is understood that the restructure meant that his role no longer existed.

Heinz confirms the departure of Kaye but would not comment on today’s announcement as Marketing Week went to press.

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