Croatian food company Podravka is set to axe 340 jobs as part of a redundancy programme.
Employees affected work in positions within meat processing unit Danica, as well as the Podravka parent company itself. Around HRK45m (US$8.1m) has been earmarked for severance costs.
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“Implementing [the programme], we make the remaining jobs sustainable and create presuppositions for Podravka Group’s future growth and development,” Zvonimir Mršic, Podravka’s management board president, said.
Podravka published a statement from Ksenija Horvat, the president of its works council and the main union commissioner of the Podravka PPDIV union, who said the redundancies were a way of “rejuvenating the company”.
Horvat added: “This is not a small number of our workers that are leaving the company, but considering the economic situation, the offer from the Employer is more than fair.”
Last week, Podravka reported its results for 2013. It said “all levels of profitability” improved last year, which the company described as a “significant turning point” for the business.
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By GlobalDataThe company, which sells products from baby food to meat products throughout Europe, booked an underlying net profit of HRK200m, compared to HRK112.6m in 2012.
The result included expenses from a restructuring programme, which has seen Podravka line up assets for sale.
The group’s bakery and beverage busineses are to be offloaded, as well as part of its frozen food divison.
Operating profit was up 20.6% at HRK131m as Podravka trimmed marketing, selling and distribution costs. Sales were flat at HRK3.63bn as a fall in revenue from Croatia, Podravka’s largest market, offset improvement elsewhere.
