Swedish confectionery group Cloetta has announced that it is to cut the workforce at its AB Karamellpojkarna subsidiary by 25, as a result of rising costs that it has not been able to offset through increased revenue.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“Continued price pressure and aggressive competition in the market, combined with factors like rising raw material prices and a weakened Swedish krona, have impaired the company’s profitability in the past year,” said Cloetta managing director Curt Petri.
“This calls for forceful measures to improve efficiency. Because the factory in Alingsås is dimensioned for a production volume that exceeds the currently forecasted volumes, this has resulted in a need to reduce the number of employees.”
The announcement was made at a staff meeting today (16 March) in Alingsås. The redundancies will extend to both white-collar and blue-collar staff, Cloetta said.
“We deeply regret having to take measures of this type,” said Pierre Carnefeldt, managing director at Karamellpojkarna. “But they are necessary in order to adapt our operations to the market situation. The next step will be to begin negotiations with the union representatives.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataA spokesperson for the company told just-food that it is unclear when the cuts will come into effect, as it must first complete a consultation with worker representatives.
