Australian food manufacturer Goodman Fielder is to shut three bakery facilities in a bid to create a “more sustainable business” in the sector.
Goodman Fielder, which is undergoing a major review of its operations to make it more competitive, said yesterday (25 June) sites in Rockhampton, Cairns and Melbourne would close.
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The moves will lead to the loss of 115 jobs, bringing the number of staff who have faced the axe to 541 in the group’s current financial year.
Goodman Fielder’s company-wide review has taken in four different areas – baking, the structure of its organisation in Australia, its business structure in New Zealand and improving efficiency from its manufacturing and supply chain.
The company also announced plans to further streamline the number of bakery products it sells.
In its supply chain, Goodman Fielder has switched from a vendor to a contractor distribution model in Tasmania. The company said further changes could also be made elsewhere in its supply chain for bakery products.
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By GlobalDataThe company saw profits slump in its last financial year amid higher raw-material costs and lower sales.
Earnings in the first half of Goodman Fielder’s current financial year were also lower thanks to charges from its restructuring but also trends in the wider Australian grocery market. The company blamed low consumer confidence, discounting and a “resurgence” in own label.
