Early retirement and voluntary redundancy are expected to cover most of the 100 jobs to be lost over the next two years at Irish Biscuits, sources close to the company have indicated.
Irish Biscuits currently employs 600 people, 500 of whom are based in the manufacturing plant in Tallaght, Dublin.
Discussions have already begun with the trade unions in Irish Biscuits on how the job cuts will be implemented. It is understood that most will be eliminated on a voluntary basis, with Irish Biscuits expected to offer a generous severance package.
The cutbacks at Irish Biscuits are part of a Europe-wide rationalisation by French parent company, Danone, of its biscuits business. As well as the 100 jobs in Dublin, Danone is closing six plants in Europe with the loss of 500 jobs in France, 390 in Hungary, 200 in the Netherlands and 180 each in Italy, Belgium and Britain. Irish Biscuits managing director Mr Neil Sanderson said: "A combination of increased competition, falling sales volumes and over-capacity at the plant in Tallaght means the factory is not competitive in terms of international production efficiency ratios. We have a tough job to do but we now have an opportunity to improve cost efficiencies and ensure that the Tallaght plant will have a positive future."
Irish Biscuits had a turnover of £91.5 million (€115 million) last year and about half its production goes to the domestic market, where its Jacobs brand is the market leader. The rest goes to the British and other European markets.
The decision to include Ireland in the rationalisation programme follows Danone's failure to find a buyer for the combined British and Irish biscuits businesses last year. Danone wanted to sell the businesses as a single unit but failed to find a buyer willing to meet the £100 million sterling (€162 million) price tag it placed on them. A number of Irish companies, including IAWS and Cantrell & Cochrane, made tentative approaches to Danone about possible bids for Irish Biscuits but withdrew when it was made clear that the French group wanted to sell the Irish and British businesses as a single unit.
