Dairygold plans to cut 70 jobs over three years as part of its Business Optimisation Programme, targeting €14 million in savings. This follows a turnover decline to €1.4 billion in 2023 due to market challenges. The restructuring will involve natural attrition, redeployments, and voluntary redundancies, impacting Dairy Ireland, Agri-Business, and management. Economic factors like inflation and interest rates are part of the thorough review. Discover more about Dairygold's strategic approach and future plans.
Key Takeaways
- Dairygold plans to cut 70 positions over three years as part of its Business Optimisation Programme.
- The programme aims to achieve €14 million in cost savings by 2027 through various workforce adjustments.
- Job reductions will occur via natural attrition, redeployments, and voluntary redundancies.
- Dairygold's 2023 turnover decreased by €254.7 million due to lower market returns.
- Organisational restructuring will focus on Dairy Ireland, Agri-Business, and management functions to enhance efficiencies.
Dairygold has announced plans to cut 70 positions over the next three years as part of its Business Optimisation Programme, aiming to achieve €14 million in cost savings. The programme, approved by the board, spans three years with completion targeted for 2027. The job reductions are intended to occur through natural attrition, redeployments, and voluntary redundancies. This strategic move underscores the company's efforts to address the employee impact while maintaining operational efficiency amid an evolving economic landscape.
In 2023, Dairygold recorded a turnover of €1.4 billion, marking a decrease of €254.7 million from the previous year. The decline has been attributed to a significant fall in market returns throughout the year. With a workforce of approximately 1,300 employees across five countries, the company is largely supported by 6,600 farmer-shareholder members primarily based in Munster.
The Business Optimisation Programme aims to enhance cost savings and realign resources to bolster financial performance and future growth. The organisational restructuring will affect various business units, including Dairy Ireland, Agri-Business, and management functions. The measures are crafted to improve manufacturing and operational efficiencies while rationalising third-party expenditures.
This initiative further complements efforts to enhance margins and prepare for future growth opportunities. As part of the restructuring, the company emphasises the necessity of reviewing its structures to remain competitive and manage potential fluctuations in milk production, which is expected to stabilise at 1.4 billion litres.
Economic challenges such as inflation in labor, energy, and materials costs have compounded the need for cost-saving measures. Additionally, changes in interest rates have increased the business's cost base, prompting a thorough review process that began in November. The focus remains on optimising core business performance, aligning with Dairygold's 2030 growth strategy.
Chief Executive Michael Harte has highlighted the importance of competitiveness in the current economic climate. He emphasises the need for communication and consultation with employees and representatives to manage the employee impact effectively. The initiative reflects Dairygold's commitment to taking stock and right-sizing the business, ensuring stability and sustainability in the face of economic pressures.
