Parmalat intends to cut thousands of jobs
Mar 26, 2004 12:17 PM, from staff and wire reports
Insolvent Italian dairy group Parmalat plans to terminate the jobs of almost half of its employees as it sells or liquidates operations in 20 nations. Parmalat said it is negotiating with a bidder for the sale of its United States unit and also intends to sell operations in Mexico, Latin America, and Asia.
After sales and liquidations in its 30-nation operations, the scandal-ridden firm's global workforce would drop from 32,000 to less than 17,000.
In December 2003, an audit of ParmalatFinanziaria indicated serious accounting irregularities and roughly $18 billion in debt.
Enrico Bondi, the court-appointed administrator for Parmalat, plans to pare the firm down to focus on Italy, Europe, Canada, and Australia. In a meeting with international creditors, Bondi requested about 30 banks and 20 bondholders to convert their debt without distinction between creditor classes, said Carlo Chileri, who heads the consumer group Adoc.
Bondi said his restructuring plan for Parmalat probably would begin in August or September, according to Chileri.
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