As the company states in a press release, the aim is to ensure its competitiveness, expand the range of products into new categories and develop export sales. Today Fazer has bakeries in Kaunas and Ogre.
It is reported that due to a possible change, Fazer is initiating consultations, after which up to 185 employees may lose their jobs in Kaunas.
“Consumption of packaged bread products in the Baltic States has been decreasing for several years in a row, and over the past year, according to market research company Nielsen, the bakery market has decreased by 2 percent. Consumers have become more sensitive to price changes and prefer cheaper products, leading to even greater competition and lower margins. Investments in a modern warehouse, new product selection and updated production processes would amount to 18 million. euros. This would be an extremely significant investment for the bakery market of the Baltic countries,” the press release reads.
Initiates consultations with the works council
Possible changes will affect employees, so Fazer initiates consultations with the Kaunas division’s labor council. Changes in Kaunas will affect up to 185 employees, with whom employment relations may be terminated. Fazer plans to hire up to 60 new employees for the smooth operation of the new lines in the Latvian city of Ogre.
“If the plans go ahead, we will do everything we can to support our employees and help them find new jobs.” Vacancies in other Fazer Group divisions would be offered on a priority basis to those employees whose employment relationships might be terminated. We will closely cooperate with various partners and the Employment Service department in Kaunas”, says Anne Mere, general director of Fazer Bakery Baltics.
If the changes were implemented, the transfer of production would be carried out in the autumn-winter period of this year and would be completed by the beginning of 2025.
After the planned changes, Fazer Bakery Baltics Lithuanian commercial division with auxiliary functions would continue to operate in Kaunas. Partnerships and sales to Lithuanian customers would continue. All customer deliveries would normally take place through Lithuanian logistics partners.
“Today we occupy a strong 2nd place in the markets of Lithuania and Latvia and 3rd in Estonia – our goal is to strengthen our positions. With one modernized production unit, we would have the opportunity to expand the well-known brands and product range into new categories, thus meeting the different needs of consumers even better than before,” says A. Mere.
According to Rekvizitait.lt, Fazer currently has 210 employees in Lithuania. The average salary before taxes is 1,892 euros.
