Food group Glanbia has initiated a voluntary redundancy programme in its consumer products division, due to a difficult retail trading environment across Ireland.

Glanbia employs 2,000 people in Ireland, of which about 650 are employed in consumer products, working on brands such as Avonmore, Kilmeaden and Premier Dairies. It is understood that staff at three Glanbia sites – Drogheda, Co Louth; Ballitore, Co Kildare; and Citywest, Dublin – will be affected by the move. Glanbia also has a soup plant in Kilkenny, but this is not thought to be affected.

Reorganisation
In a statement, the company said the operating environment for consumer products "continues to be impacted by the challenging Irish retail environment as well as high input costs due to sustained increases in global dairy market price".

As a result, the company has embarked on a reorganisation of this business, which will “regrettably” involve a number of redundancies. Employees were told of the decision last month, but according to Glanbia, it is not yet clear how many jobs will go.

Discussions
"The final details of which have yet to emerge as it will be a blend of those who avail of consumer products voluntary redundancy programme or relocation and outsource job opportunities and discussions with employees and their representatives," the company said in a statement.

However, it has been reported that as many as 43 out of 103 jobs at Glanbia’s Drogheda site may be impacted by the decision.

In August, outgoing managing director John Moloney said that the consumer products division had had a "very difficult" first half of the year, as the group dealt with the challenge of a rise in market share by private label products, at the expense of branded products.

In addition to redundancies, Glanbia’s consumer products reorganisation will also include a capital investment programme in new technologies and new facilities; redesigning parts of the supply network for efficiency; and a restructuring of head office functions .