Saputo job cuts: Dairy processor closes Maffra dryer, redeploys at Cobram

Dairy giant Saputo has announced it will shut down one of its Maffra plant’s driers and cut 18 jobs.

Lino Saputo's company bought up Warnambool Cheese and Butter and Murray Goulburn’s assets but now he’s cutting jobs.

Canadian dairy giant Saputo will shut down one of its Maffra plant’s two milk powder dryers and shift its Cobram individual wrapped cheese slice operation to a new site.

Saputo issued a statement that said “after careful consideration, we have announced plans to streamline operations at our Maffra and Cobram sites, with these measures aimed at improving our operational efficiency and right sizing our manufacturing footprint.

“We have made the difficult decision to close one of the two dryers at our Maffra site from 1 March and are seeking expressions of interest for 18 voluntary redundancies.

“At Cobram, our Individual Wrapped Slices production area will close in June 2022, with this work moving to an alternative manufacturing arrangement.

“We are exploring redeployment opportunities for the limited number of employees impacted. “These decisions are not taken easily, however, they are an important part of the continual analysis of our overall activities. Site management are working with affected employees at both sites to discuss the range of options and support available to them during this time.”

The Weekly Times understands Saputo wants 12 processing workers and six maintenance staff to take voluntary redundancies at Maffra, while 26 processing jobs would be lost at the Cobram plant, although the company was attempting to redeploy those workers into other roles.

The Montreal-based company’s chair, president and chief executive Lino Saputo, this week announced a series of reforms across the company’s US and Australian operations, which he said were “the first in a series of investments and consolidation activities that will increase efficiency and productivity, improving our ability to meet the evolving needs of our customers and consumers”.

In the US the company plans to invest approximately $169 million in modernising and expanding its cheese manufacturing facilities in Wisconsin and California.

However the company is also cutting back some US operations, announcing it will “consolidate the cut-and-wrap activities in its West Coast operations, and right-size its footprint by closing its Bardsley Street, Tulare, California, facility in fiscal 2023.

“The impact on employees is expected to be minimal as opportunities for employment will be available at other Saputo facilities in Tulare.

Saputo expects the capital investments and consolidation initiatives will deliver annual savings in 2023, which will ultimately save $123m (CAN$112m) by the end of 2024-25.