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.
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.
Panrico is forecast to post an EBITDA loss this year of around EUR13m. Four years ago, it booked EBITDA of EUR40m.
Industry 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.