As first announced in July, Wessanen has been assessing the company’s structure and cost base on a more structural basis. After implementation during 2013, the planned transformation is expected to generate cost savings in the order of €15m per annum from 2014 onwards.
It will impact approximately 300 full time equivalents (FTE) in Europe. Consultation with the European and local works councils will start immediately.
The one-off costs associated with its implementation are estimated to be €24m, of which €15m have a cash effect over the next 12 months.
Piet Hein Merckens (CEO), said: “In the past period, we have spent a considerable amount of time assessing business opportunities and issues. We have also thoroughly looked at our structure and cost base with the aim to deliver more efficiently our strategic agenda and adapt to a changed environment.
“As a result, we are initiating a wide range of actions to increase focus, substantially reduce complexity and simplify and standardise processes. In addition, we are also addressing low-yielding and non-performing activities.
“This all will result in a substantial reduction of our workforce. I am fully aware of the consequences this announcement will have for many of our colleagues and I am grateful for their considerable contributions in building our businesses.”
Source: Royal Wessanen
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