Dutch fresh produce company The Greenery has embarked on two days of talks with all members of staff as it begins to carry out a major restructuring of its businessaimed at saving around €30m and putting the group back on course to make a profit within 12 months.
As part of the so-called Phoenix Plan, put together by interim chief executive and renowned 'change management' specialist Okke Koo and approved by parent cooperative Coforta, around 300-350 staff – or one-third of the company's 1,200-strong workforce – are set to be made redundant over the next couple of days.
With those redundancies occurring at all levels of the business, a number of the company's senior management team are also expected to be laid off prior to next month's annual Fruit Logistica trade fair in Berlin as the board of directors seeks to reverse a worrying decline in profitability witnessed over the past three years.
As reported in early December,around 30 permanent head office jobs are expected to be removed, while a halt to the issuing of all temporary packhouse staff contracts has been introduced.
In a statement, Koo said the period of consultation with staff would be difficult but was necessary in order to reconfigure The Greenery's business and, in doing so, put the company back on a steadier commercial and financial footing.
Some parts of The Greenery's portfolio, for example its fresh convenience operation, packaging division and shareholding in Euro Pool Systems have all continued to perform well, but its glasshouse business has made major losses over the past couple of years.
Difficult but necessary
As a result, this week's layoffs are seen as a difficult but necessary step. 'The next few days will sadly be marked by uncertainty and disappointment,' Koo explained. 'There is understanding and compassion for those colleagues that are going to leave the company. For others, though, the new organisation will provide new opportunities
'The framework of roles and responsibilities has now been completed and now we are starting to implement it. That means talks with those we are making redundant and those who are staying,' Koo commented.
Earlier this week, it emerged that The Greenery was to be reorganised into four business divisions, with sales to retail and trade customers split and managed separately.
For the coming five years, the group said it would pursue a cost/price leadership strategy, delivering its products and services 'at the lowest cost price'.
Koo revealed that new job vacancies would be created by the new commercial structure, with those made redundant having the option to reapply for any new openings.
'The available roles will be published on GreenSite and noticeboards from 10 January,' he said. 'All redundant employees can apply for these and will have priority over other candidates with similar capabilities.'
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