18 September 2008 - Swedish confectionery firm Cloetta Fazer AB has announced it will cut 60 jobs in Sweden within the administration, marketing, customer and sales departments, as a result of its demerger plans and decreasing profitability.
In June, Cloetta Fazer's two major shareholders said the company would be split up into Cloetta and Fazer Confectionery.
As of 1 January 2009, Fazer products will be taken over by Fazer Confectionery, and the new Cloetta will miss some 40 pct of its revenue, the company said.
Moreover, Cloetta Fazer's Q2 2008 results, which were issued last month, showed lower gross margins resulting from increased raw material costs and higher selling and marketing expenses. This also influenced the lay-offs decision, said Cloetta Fazer CEO Jesper Aberg.