Loss-making Spanish bakery group Panrico is considering cutting 1,900 jobs as it looks to try to put itself on a firmer financial footing.
Panrico, which has run up accumulated losses of EUR700m in the last four years, put forward the proposed move in a meeting between management and union officials yesterday.
Go deeper with GlobalData
The baker, which owns brands including Donettes and Qe!, last week temporarily suspended the pay of over 4,000 staff as it draws up measures to stave off possible insolvency.
The proposals put forward yesterday also include cutting salary costs by around a third. It is understood Panrico is pressing for agreement from unions within 30 days.
just-food understands union officials walked out of the meeting. However, a union statement seen by just-food called the proposals “extremely tough”. Union representatives could not be reached for comment. Panrico declined to comment.
See Also:
Panrico is forecast to post an EBITDA loss this year of around EUR13m. Four years ago, it booked EBITDA of EUR40m.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIndustry watchers believe Panrico has suffered as Spanish consumers, hit by the economic crisis in the country, have sought cheaper products. Own label has also made inroads into the categories in which Panrico operates. Market experts also argue Panrico has reacted quickly enough to these tougher trading conditions.
