Heinz said last night it would cut 8 per cent of its work force as part of a move to increase spending on the development of new products and on marketing.
It is not believed that that 300 workers at the Heinz factory in Dundalk, Co Louth, will be included in the job cuts.
Heinz said it expects to cut 2,700 jobs and leave 15 plants in 2007 to cut costs. Another five plants could be closed in 2008, it said.
The company's board of directors also approved $1 billion for share repurchases over the next two years. Heinz said it plans to cut $355 million in costs over the next two years.
The company is under pressure from investor Nelson Peltz to improve its performance. Mr Peltz's Trian Group said it would keep pushing for a presence on Heinz' board of directors and dismissed the new plan as one that set lower performance goals than those in a proposal put forth by Trian last week.
Heinz reported lower quarterly net earnings but forecast a better-than-expected 10 per cent increase in earnings per share for fiscal 2007 and said it would raise its dividend 16.7 per cent.
Mr Peltz and his Trian Fund Management group have been pressuring Heinz to return more money to shareholders, divest more assets, and cut selling and other costs by $575 million annually.
Trian has launched a proxy fight to put five representatives on Heinz's 12-member board.