News
Fazer considers cutting 185 jobs after Baltic bakery consolidation
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.”
Entry probably the most complete Firm Profiles
available on the market, powered by GlobalData. Save hours of analysis. Acquire aggressive edge.
Firm Profile – free
pattern
Your obtain e mail will arrive shortly
We’re assured in regards to the
distinctive
high quality of our Firm Profiles. Nonetheless, we would like you to take advantage of
useful
determination for your online business, so we provide a free pattern you could obtain by
submitting the under kind
By GlobalData
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.
-
News4 weeks ago
Rachel Reeves is right to cut the winter fuel payment
-
News4 weeks ago
Canelo vs Berlanga: Live streaming results, RBR, how to watch
-
News4 weeks ago
China to raise retirement age for first time since 1950s
-
News4 weeks ago
Kristina Joksimovic: Miss Switzerland finalist ‘strangled, dismembered and pureed in blender by husband’
-
News4 weeks ago
Donald Trump safe and suspect held after man spotted with rifle
-
News4 weeks ago
Brits target success at FIA Karting World Championships
-
News4 weeks ago
Davis Cup 2024: Great Britain vs Finland – results & updates
-
News4 weeks ago
Jon Bon Jovi praised for persuading woman to come off bridge ledge in Nashville