Vion Food Group has announced plans to reduce its workforce in the Netherlands, which will affect approximately 165 employees as the company seeks to optimize operations within the competitive food and beverage industry trends.
In a recent statement, the Boxtel-based organization disclosed that about 40 of these positions will be subject to “compulsory redundancies.” Vion pointed out that “changing market conditions require adjustments to the size of the organization.”
Moreover, Vion is transitioning away from the German market to concentrate on the Benelux regions, acknowledging the need for strategic focus in its food and drink business. Earlier this month, the company sold its interests in two German locations to Erzeugergemeinschaft Südbayern, further solidifying its shift in priorities.
In January, Vion closed one facility in Germany while reaching agreements to divest from three others. Following these decisions, Vion indicated its intent to completely exit the German market, highlighting the company’s commitment to adaptability in response to evolving food and drink consumer trends.
In yesterday’s update, dated August 28, Vion emphasized: “As a result of changing market conditions, it is necessary to make continuous adjustments. Vion has decided to focus more on strengthening chains in the Benelux.”
While Vion has begun discussions with workers’ unions regarding the transition, the parties were unable to finalize a “social plan.” However, a framework agreement was established with a works council to ensure that the redundancy process is handled with exceptional care. Vion is conscious of the difficulties faced by affected employees and is striving to mitigate adverse impacts where possible.
As Vion restructures its operations, the company reassured its stakeholders, stating: “Vion benefits in this region from market leadership in pork and beef, as well as animal welfare and sustainability, its global sales network, and advanced data-driven valorisation capabilities.”
The overarching transformation strategy, including divestments in Germany, positions Vion for future growth and resilience; nevertheless, it necessitates the alteration of the indirect organization to achieve greater efficiency.
For further information, Just Food has reached out to both Vion and local trade unions regarding the details surrounding the layoffs.
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