The Brazilian unit of troubled Italian food group Parmalat has said it has laid off more than 100 workers at its Sao Paulo headquarters.

Parmalat Brasil Industria de Alimentos, which filed for bankruptcy protection in January, is struggling to survive the financial scandal at its Italian parent.

Keyler Carvalho Rocha, the court-appointed administrator of the unit, said the layoffs were due to weak sales.

“We are reducing our office size so it has less floors since the company’s activities have decreased. The sales area has less merchandise to sell, so we don’t need so many salespeople,” he was quoted by Reuters as saying.

Rocha said production at the unit’s facilities had begun to increase and he has secured financing for the unit from some Brazilian banks, reported Reuters.

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The unit’s Italian parent has this week outlined its recovery plan. To read more, click here.