Cloetta subsidiary Karamellpojkarna to cut 25 jobs
Cloetta Group subsidiary AB Karamellpojkarna announced on March 16, 2009, that it will reduce its workforce by 25 employees at its Alingsås factory. The company cited rising costs and decreased profitability as reasons.
AB Karamellpojkarna, a confectionery subsidiary within the Cloetta Group since late 2007, will reduce its workforce by 25 employees. The decision affects the company's factory in Alingsås, Sweden. The redundancies are attributed to rising operational costs that have not been offset by revenue increases.
Curt Petri, Managing Director of Cloetta AB, stated that increased market price pressure, intense competition, higher raw material costs, and a weaker Swedish krona have negatively impacted the company's profitability over the past year. He added that the Alingsås factory's production capacity exceeds current forecasts, necessitating workforce adjustments.
Pierre Carnefeldt, Managing Director of AB Karamellpojkarna, acknowledged the regret associated with such measures but deemed them necessary for adapting operations to the current market conditions. Negotiations with union representatives are set to commence. The job cuts will impact both white-collar and blue-collar positions.
Looking ahead, Karamellpojkarna plans to prioritize and intensify efforts to develop its Extra Starka brand. This strategic focus aims to ensure the continued stability of the Alingsås manufacturing operations.