Heinz Combining Its 5 Sales Operations

H.J. Heinz & Co. said that it’s combining its five North American sales operations at its Pittsburgh headquarters as part of a global restructuring to cut costs and free up money for marketing. Heinz will close its StarKist Foods Inc. and StarKist Seafood and Heinz Pet Products offices in Newport, Ky., affecting about 400 jobs. The tuna and seafood sales forces will join the company’s other three units--catsup, frozen food and food service--in Pittsburgh. As part of its restructuring, Heinz will place sales teams at the headquarters of major chains, including Kroger Co. and Wal-Mart Stores Inc. The sales force restructuring is expected to save Heinz about $25 million a year starting in fiscal 2001. Its fiscal year ends in April. Heinz is offering more than 200 Kentucky employees the opportunity to transfer to Pittsburgh. The relocation is scheduled for completion by mid-2000. The rest of the workers will be offered severance packages and job-search counseling. Heinz shares rose 38 cents to close at $44 on the New York Stock Exchange.