MILAN (Reuters) – Italian spirits group Davide Campari, led by its new Chief Executive Simon Hunt, said on Thursday it needed to take some “tough decisions, such as organizational restructuring” to ensure the group’s return to financial health.
Italian daily MF reported on Thursday that the group was working to cut its workforce by 10%, meaning around 500 people.
Asked for a comment, Campari said in an emailed statement that it needed a more efficient resource allocation, as changes in top-line performance and existing infrastructure investments had impacted profitability.
“We are gradually implementing a comprehensive set of company initiatives to accelerate growth and profitability via focus, simplification and cost containment”, it said.
Campari said it was a “wide and ongoing process” and it was currently difficult to provide a specific global number for those who would be impacted.
Campari shares were up 2% at 1145 GMT.
Hunt was appointed chief executive officer in January to replace Matteo Fantacchiotti who resigned in September after only five months in the job.
Campari reported a 18.2% drop in third-quarter operating profit, warning that its fourth-quarter results would be hit by lower production volume and an unfavourable sales mix. It is due to report its full year results next month.
At the end of the third quarter, the group said that streamlining its product portfolio and clamping down on costs would help to achieve a gradual return in the medium term to a mid-to-high single digit organic net sales growth.
(Reporting by Elisa Anzolin, Editing by Alvise Armellini and Keith Weir)
