Bimbo Donuts Iberia, a Spanish unit of Mexican-based bakery business Grupo Bimbo, plans to reorganise its sales operations to reflect a change in market conditions with the potential loss of jobs.
The plan will involve restructuring of the company’s distribution routes and the formulation of a so-called Employment Regulation File covering economic, organisational and production parameters, Bimbo Donuts Iberia said in a statement. The plan could entail up to 290 job cuts.
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In order to minimise the impact on employees, the company is looking at various social measures and plans to engage with worker representatives to find the best solutions and alternatives, it said.
Bimbo Donuts Iberia added the company had seen a “progressive” deterioration in demand for its branded bread and pastry products in recent years, leading to a loss in manufacturing volumes. It is therefore taking the measures to ensure the business remains economically viable for the future.
As it seeks to tackle the drop-off in demand, Bimbo Donuts Iberia said it will invest in research and development to come up with new value-added products.
While Grupo Bimbo looks to shed jobs through the reorganisation of its sales network and distribution channels, it is investing elsewhere in Spain. In August, it announced expansion at its plant in Puente Genil to produce salted pastries.
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By GlobalData
