Pioneer Foods (South Africa) / To cut 10% of jobs

South African food manufacturer Pioneer Foods (PFGJ.J) is cutting jobs as part of a restructuring process to reduce costs in the face of constrained consumer spending, its chief executive said on Monday.

Retailers and those who supply the sector in Africa’s biggest economy are under pressure as debt-laden consumers cut spending, while higher input costs and tougher competition hit margins.

Pioneer chief executive Phil Roux said reducing the wage bill was one of the initiatives the firm was undertaking to increase competitiveness and enhance profitability.

“We are reducing our head count. Most of the work has taken place already,” Roux told Reuters.

He did not say how many jobs the group, which makes bread, breakfast cereal and juices, would cut as the company was in a closed period ahead of its annual results release next month.

Local media reported that Pioneer plans to cut 10 percent of its more than 12,000 employees.

Chosen excerpts by Job Market Monitor. Read the whole story at 

via South Africa’s Pioneer Foods slashing jobs in cost cut drive | Reuters.