US crackdown forces out 800 Aryzta staff
IRISH-SWISS food giant Aryzta is facing continuing losses at its US Cloverhill facilities following an immigration crackdown which forced out 800 workers.
More than a third of its staff had to leave the US operation after a federal audit of a third party staffing agency found that hundreds of workers did not have the correct paperwork.
The audit took place earlier this year and Aryzta, now headed by new ceo Kevin Toland, told investors it was struggling to replace the skilled bakers.
The firm said: “As these individuals had significant knowledge and experience of the baking process and represented over one-third of the workforce at these facilities, there has been a significant decrease in the labour efficiency and production volumes. These locations incurred €16.3m of losses during June and July 2017, which is expected to continue to impact the business during full-year 2018.”
The company said it lost the 800 workers within six weeks. “We had to recruit and train our people who had no experience in this area in a very short period,” it said.
Meanwhile, a process to sell Larousse Foods will begin this week, with a management buyout backed by private equity tipped as a likely outcome. Among those expected to be interested is Carlyle Cardinal Ireland.