Finnish food maker Fazer Group has said 96 jobs could be lost as a result of a review of its in-store bakery operations.
The news comes just days after Fazer scaled back plans for a new confectionery factory and a month after the company confirmed it is going ahead with a plan to exit the dairy category, including ending production of dairy products. dairy products at its Koria plant.
Now Fazer says it’s planning changes to its in-store bakery model. The group has 131 such outlets in grocery stores in its domestic market, adding 13 in the last 12 months.
He said the review of the transaction is an attempt to “create the best conditions for profitable growth and even closer cooperation with customers in the future.”
Fazer is starting negotiations with the 660 employees who work in the in-store bakery business in Finland and says the talks could lead to the “termination of a maximum of 96” jobs.
For other employees at the operation, it could mean “job changes or the creation of new job assignments.”
Fazer said it is planning changes to the operating model that “would allow the company to further strengthen the business and rapidly respond to changing customer and consumer needs.”
As with the plan to downsize its proposed confectionery factories, the company seems to be blaming the economic context for the need to overhaul its in-store bakeries.
“Consumer buying behavior has changed as a result of inflation, the uncertain global situation, and rising energy and raw material costs. Consumers are more cautious when shopping and often choose affordable products in their shopping carts,” he said.
“To support profitable growth while strengthening competitiveness, Fazer needs to review its operating methods.
“Fazer is considering changes that aim to adapt the organization of the shop-in-shop bakery and its operating methods to the rapidly growing business and changes in the external operating environment. The company’s goal is a competitive and more flexible operating model, which would also help to further strengthen supervisory work and the well-being of staff at work.”
He said the negotiations with the employees, which will begin next Monday (March 20) and last at least six weeks, could involve “potential relocation and education possibilities.”
just food has asked Fazer for more details of the review, specifically whether any bakeries will close, which employees are at risk of losing their jobs and what changes other employees will face.
