Portugal Colonial - Swiss chocolate giant Barry Callebaut may cut 18% of jobs

Chief executive Peter Feld told the Handelsblatt newspaper that the company may slash 2,500 jobs, or 18 percent of its workforce.

"It is about reducing complexity and eliminating duplication and inefficient structures," Feld told the German daily.

The company confirmed the potential job cuts in a statement to AFP.

"Discussions with employee representatives have just begun," the statement said.

Barry Callebaut supplies cocoa and other chocolate products to food industry giants including Hershey, Nestle and Unilever.

The group has been undergoing reorganisation since Feld became chief executive in April, as the firm battled to move on from a salmonella outbreak at a Belgian facility while facing inflationary headwinds.

In September, it launched a strategic investment program of 500 million Swiss francs ($568 million) in innovation, services and digitalisation.

"Our goal is to make Barry Callebaut fit for the future and take it to the next level of growth," Monday's statement said.

"It also includes measures to increase efficiency within the company. Overall, the program aims to reduce costs by 15 percent, which could affect up to 2,500 positions worldwide over the next 18 months, primarily by eliminating duplication and inefficiencies," it said.

H.Portela--PC