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October 15, 2014

Fazer job cuts lowered as consultation period ends

Fazer Group has reduced the number of job it plans to cut as part of a restructuring of its confectionery, cafe, bakery and foodservice divisions.

Fazer Group has reduced the number of job it plans to cut as part of a restructuring of its confectionery, cafe, bakery and foodservice divisions.

In August, the Finland-based group announced it had expected 61 jobs to go, as it responded to “quick and extensive changes” in its “operational environment” in an attempt to secure profitability and “maintain competitiveness”. Today (15 October), Fazer revealed 49 jobs would be axed.

“Consumer behaviour and clients’ expectations have changed, price competition has become fiercer and Fazer’s net sales growth has stagnated due to the weakening purchase power and declining total consumption. The aim is to improve competitiveness and secure profitability by developing products and services based on consumers’ and customers’ needs,” the firm said in a statement.

A spokesperson for Fazer told just-food that while a “maximum number” of layoffs had been outlined at the start of the negotiations process – a requirement under Finnish law – during the negotiations, the firm explored ways to “reorganise the work, the needed roles and ways to implement the possible changes”. As a result it was able to “find other ways” of reorganising, rather than cutting the number of jobs originally anticipated.

He did not comment on the details behind the job cuts in terms of the divisions affected.

Last month, the company closed a plant in Estonia, a move which affected 95 employees.

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