Noodle maker Indofood Sukses Makmur has said that it laid off 2,900 workers in the year to end-October in an effort to make the company more efficient, according to the Dow Jones news agency.

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“We plan to continue to lay off another 600 workers by the end of this year to improve efficiency,” Indofood’s vice president Franky Welirang told reporters.


After the layoffs, Indofood’s workforce will total 46,500.


The world’s largest instant noodle maker by volume has spent IDR130bn (US$13.4m) on compensation for laid-off workers to date.


“The layoffs, however, will save us up to IDR100bn on salaries a year,” said another Indofood vice president, Cesar Dela Cruz.

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Analysts said Indofood needs to streamline its workforce in order to maintain growth and increase its falling share of the noodle market.


Indofood currently has a 73% share of the national noodle market, down from around 90% in early 2000, due to stiffer competition.


Dela Cruz expected market share to increase to above 75% next year as the company plans to introduce new products.

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