Following the conclusion of pickle production, employee redundancies occur at the Spreewald production facility.
In the heart of Germany, the traditional company Spreewaldkonserve has announced a significant restructuring plan, set to result in the loss of 200 core employees from late October. This decision comes as the company grapples with challenging market conditions and the need to streamline operations.
The main harvest season for Spreewald cucumbers, a protected brand name within the European Union since 1999, is July and August, ending in October. Seasonal workers are primarily employed during this period for the harvest of these distinctive cucumbers, which are renowned for their quality and unique taste.
The reasons behind these job cuts are multifaceted. Increased competition in the food preservation and vegetable processing industry has put pressure on Spreewaldkonserve to streamline operations. To maintain profitability, the company is implementing cost-saving strategies, which unfortunately include workforce reductions.
Investments in automation to modernize production may reduce the need for manual labour, leading to job cuts. Shifts in consumer preferences and demand patterns might have affected production volumes, prompting adjustments in staffing. Broader economic challenges such as inflation, supply chain disruptions, or energy costs can impact operational expenses, causing companies like Spreewaldkonserve to restructure their workforce.
CEO Till Alvermann emphasizes the need for Spreewaldkonserve to "return to the black numbers," and he sees a critical increase in the minimum wage as detrimental to labour-intensive fruit and vegetable cultivation, as it could make German cucumbers more expensive and less competitive.
Despite these changes, the production facility at the traditional location in Golßen will not be closed, but the second location in Schöneiche will be. Alvermann is optimistic that a large part of the affected colleagues will find new jobs nearby.
Brandenburg's Minister of Economics, Daniel Keller (SPD), has intervened regarding the end of cucumber production in Golßen. The farmers' association also warns of serious consequences of the minimum wage increase. It is essential to note that the statutory minimum wage in Germany is set to rise in two steps to 14.60 euros by January 1, 2027, and it currently stands at 12.82 euros.
Spreewaldkonserve, which has been owned by the French food conglomerate Andros ("Libby's", "Bonne Maman") since 2021, has reportedly lost double-digit millions annually, and the previous business model is no longer sustainable. The company will convert its year-round operation to a seasonal operation for cucumbers in the future.
There has been a protest against the end of cucumber production in Golßen, and the decision to close the production site in Schöneiche instead of Golßen will not change the future concept or the reduction of jobs. Alvermann remains hopeful about the future, stating that he believes this restructuring will position Spreewaldkonserve for long-term success and sustainability.
- Owing to increased competition within the food preservation industry, high operation costs, and inflation, Spreewaldkonserve is implementing cost-saving strategies, including investments in automation and workforce reductions, aiming to maintain profitability in the personal-finance sector of the business.
- Recognizing the challenges posed by increased labor costs and potential decreases in demand, CEO Till Alvermann is focusing on streamlining operations and modernizing production to suit the changing business environment of the finance and personal-finance sectors.
