dr Oetker said job cuts at the Germany-based food giant couldn’t be ruled out as the back-to-pizza giant sets up its growth stable.
The company has outlined plans to spend €500 million ($491.8 million) over the next three years on innovation, its digital assets and sustainability programs to “expand its leading market position in a sustainable and forward-looking way.”
However, the Ristorante Pizza owner wants to save up to 250 million euros per year with the focus on “slimming of structures and processes”.
dr Oetker has hinted that these moves could have an impact on jobs. “It cannot be ruled out that human resources will also be affected,” the company said in a statement.
A spokesman added: “We cannot rule out job cuts, but at the moment as all initiatives are being drawn up we cannot assess to what extent.”
dr Oetker employed just over 17,900 people in 2021.
The company wants to accelerate its product development and needs “leaner and more efficient structures”.
The cake maker also wants to invest in “digital skills” in its business and supply chain.
In the corporate statement, Dr. Albert Christmann, CEO of Dr. August Oetker Nahrungsmittel: “Against the background of the currently difficult and massively cost-increasing global framework conditions for the food industry, it is important that we now boldly and boldly lay the foundation for our future success. We are starting our initiative from a position of strength in order to consolidate our market position in the long term and, above all, to further expand it.”
The announcement comes just over a year since the family owning Oetker Holding agreed to split the organization into two independent groups. There were disagreements between family members over the management and strategy of all his businesses.
dr Oetker, the group’s main food business, along with the bakery Coppenrath & Wiese, the drinks company Radeberger Gruppe and the drinks supplier Flaschenpost, as well as assets in transport and hotel, were placed in a group owned by the five heirs of Rudolf-August Oetker’s first and second marriage. He was the founder of Dr. Oetker.
In 2021, Dr. Oetker sales of EUR 3.7 billion, which corresponds to the level of 2020, but an organic increase of 11%. Two thirds of the company’s sales are generated outside of Germany.