Finnish food company Fazer Group is planning to close a domestic bakery in Oulu.
The company said operations carried out at the site in the Finnish city will be transferred elsewhere. Some 83 employees will be affected by the decision.
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Fazer said the decision was taken after it “evaluated the efficiency of its bakery network”.
“Adjustments of the business need to be considered as the consumption of pre-packed bread has decreased. Respectively, the popularity of products
baked in-store has increased. The number of Fazer in-store bakeries continues to grow, and they will employ more bakers in the future,” it said.
The company now has 64 in-store bakeries employing 450 people. It estimates that in 2021 it will have 100 in-store bakeries with 600 employees.
Markus Hellström, the managing director of Fazer’s bakery operations in Finland, said: “At the same time, we must adjust our business as pre-packed bread is bought less. In addition, material and energy costs have continued to rise and it is not possible to fully transfer the cost effects into prices.
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By GlobalData“Adjusting our operations is inevitable for our future competitiveness. If the Oulu bakery were to be closed, we would help our employees to find new jobs. We would cooperate with the local employment administration and when possible, would try to offer new positions in other Fazer bakeries.”
The Oulu bakery is likely to close in the autumn.
Fazer’s other bakeries in Finland are in Vantaa, Lahti and Lappeenranta.
