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Fazer considers cutting 185 jobs after Baltic bakery consolidation

Published

7 months ago

April 24, 2024

Fazer considers cutting 185 jobs after Baltic bakery consolidation

Loaves of bread. Credit score: Fazer Group

Fazer Group is contemplating consolidating each of its Baltic-based bakeries into one manufacturing unit in Latvia which might result in 185 job losses in Lithuania.

The Finnish group is doubtlessly consolidating “all manufacturing” of its Bakery Baltics division to a bakery in Ogre in central Latvia.

The group presently operates bakeries in Ogre in addition to Kaunas in Lithuania.

The transition would contain an funding of €18m ($19.2m) for an “expanded warehouse for frozen and ambient merchandise, new selecting processes and modernised manufacturing capabilities”.

The adjustments would have an effect on a “most of 185 staff” in Kaunas which might result in the termination of employment. To run new operations in Ogre, Fazer mentioned it could must recruit as much as 60 extra staff in Latvia.

The group added: “Shoppers have develop into extra price-conscious, and the market is more and more campaign-driven which has led to cost competitors and decrease margins.”

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Anne Mere, managing director at Fazer Bakery Baltics, mentioned: “Immediately we’ve got a powerful quantity two place on the Lithuanian and Latvian markets and a quantity three place in Estonia and our intention is to strengthen our positions.

“With one modernised manufacturing unit, we could have the chance to increase our identified manufacturers and product assortments into new classes and to fulfill completely different shopper calls for even higher than earlier than.”

Fazer Bakery Baltics claims to be the third largest bakery within the Baltic market with a presence in Lithuania, Latvia and the Estonian market. Fazer makes a wide range of bakery merchandise, similar to toast, rye and wheat-based loaves and specialty merchandise as portion breads, burger buns, polar breads, bread snacks and desserts.

Fazer Bakery Baltics is one among Fazer Group’s three bakery enterprise items, alongside the Finland and Sweden divisions.

In 2023, it employed roughly 600 folks and web gross sales totalled €54m. Fazer Group’s complete bakery web gross sales had been up 7%, reaching €463m.

“If these adjustments would realise, we might do our utmost to help our staff in Kaunas and assist them discover new jobs. Vacancies in different Fazer Group items could be provided with precedence to these staff whose employment may be terminated. We might collaborate with varied companions and native Employment Service,” Mere mentioned.

If these potential plans go forward, the transition will probably be accomplished by the beginning of 2025.