January 21, 2009

Sadia to lay off 350 employees amid financial crisis

Sadia, a leading poultry producer and food company in Brazil, has decided to lay off 350 employees amid the financial crisis after losing heavily on operations.


Sadia had lost hundreds of millions of dollars in operations and foreign exchange futures positions, which led to the exit of the company's chairman and vice-chairman late last year.


Employees will now be laid off to help cut costs in face of the ongoing economic crisis, but the company said only managers, supervisors and directors of all units will be terminated.


The lay off is expected to cut costs by BRL44 million (US$18.5 million) per year in wages and payroll taxes.


However, Sadia's CEO Gilberto Tomazoni and Chairman Luiz Fernando Furlan dismissed news that floor workers would be laid off.


"Do not expect any relevant layoff news because this won't happen," Furlan said.


Sadia has 60,000 employees at 17 units in Brazil.