One of the UK’s largest fresh produce importers has made three employees redundant, including two directors.
Dole Fresh UK has laid off its marketing director Giles Shapley and commercial director Tony Frankham, as well as another unnamed employee.
Industry sources said direct sourcing from the supermarkets and pressure on banana and pineapple prices could be reasons for the move.
In September, Dole Fresh UK posted pre-tax profits of £729,000 for the year to 31 December 2009, down from £854,000 in 2008. Turnover rose from £122.7m in 2008 to £125.7m last year, while operating profit went up 63 per cent to £626,000.
The directors had claimed in their Companies House report that pressure from retailers was making margin growth difficult at a time of turbulence in currency markets.
Managing director Jean-Marie Graux told FPJ this week: “This has been a challenging year for the industry and Dole Fresh UK alike. The business has been proactive in reviewing its structure given the evolution of direct sourcing and service provision, and as a consequence, it is with regret that three positions have been made redundant. This has been a difficult decision and our thoughts are with those affected.”
It has been suggested elsewhere in the trade that the move was made to protect larger job cuts lower down the company.
Commenting more widely on the industry, Max MacGillivray, md of recruiter Redfox, said: “Often businesses cut the six figure salaries at the top to protect the jobs that help them run day-to-day to get through a difficult period. If they can get through that tricky six to 12 months then they can re-employ.
“The period we are in is one of evolution not revolution. Tesco’s global food sourcing programme and Asda’s work with International Produce Limited means that those in the chain that innovate and make themselves invaluable can remain in the chain. In late 2009, we had a lot of senior roles come through as companies strengthened to weather the storm and get through. The more strategically aware companies are those that realise that having the key staff on board will help get through such times.”
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