Goodman Fielder, a manufacturer of bread and dairy products in Australia and New Zealand, plans to close three bakeries in Australia and cut nearly 115 jobs.
This move is a part of the company's plan to lower costs and improve manufacturing and supply chain.
According to the company, the bakery at Rockhampton would be closed on 20 July; the facility at Cairns would be shut in the third quarter of the financial year ending 30 June 2013; and the bakery at Whiteside in Melbourne would be closed in the second quarter of the 2012/13 financial year.
Goodman Fielder Bakery Category managing director Pankaj Talwar said this move will allow the company to create a more efficient manufacturing footprint in its bakery business.
"We understand the impact these decisions can have on our people and our immediate priority is to ensure that our employees are supported through this process," Talwar added.
The company said that all employees from these facilities will be offered redeployment to other Goodman Fielder sites. However, those who cannot be deployed will receive full redundancies and help in the form of an employee assistance program, outplacement program and careers workshop.
Meanwhile, the company plans to upgrade its Townsville facility, which will become a hub for the North Queensland region.
Goodman Fielder said that it is in the process of simplifying its bakery range to improve efficiency, improve on-shelf availability and increase consumer satisfaction. It has already reduced the current range of 450 products to about 350, and plans to further cut 50 products.