Cloetta axes 30 jobs in Italy on sales weakness
Cloetta owns brands in Italy including Sperlari
Cloetta is to cut its workforce in Italy by 30 staff on the back of weak sales in the country.
The European confectioner, which owns Italian brand Sperlari, saw sales in Italy fall in 2014. The country was the only one of Cloetta's markets in which its sales declined.
"The decline in sales and weak market development in Italy make it necessary to adapt the organisation. Cloetta therefore intends to decrease the Italian organisation by approximately 30 employees," Cloetta president and CEO Bengt Baron said.
On a conference call with analysts, Baron revealed there were some positive signs for Cloetta in the the fourth quarter of the year in Italy but said the market had remained under pressure and said the company's sales still declined, prompting it to take action.
"Looking at very preliminary numbers, the overall market contracted. We did gain market share in seasonal sales, but overall the market contracted for the third and fourth year running," he said. "Sales were down in Italy for Q4 as has been the case for the year, therefore we are taking actions."
- Focus: Nestle CEO plan to balance sales, earnings
- Does Kraft Heinz want to swallow Unilever whole?
- Will Kellogg's DSD exit help it grow in US snacks?
- Comment: Meal kits in US - don't believe the hype
- Is Mondelez's margin target hurting sales?
- Nestle plans restructuring as 2016 profit misses
- Kraft Heinz pursuing Unilever in takeover move
- Danone eyes efficiency, agility with new structure
- Kraft Heinz returns to organic growth, ups margins
- Danone sales dampened by Europe, China