Giant flavour house International Flavors & Fragrances continues to reorganise activities after acquiring, and integrating, Bush Boake Allen with the news this week that it has axed 150 jobs as part of a savings drive.
The job cuts - to hit Europe and the North American regions - follow an announcement in October 2000 by the company that warned of a significant reorganisation - including management changes and consolidation of production facilities - to yield annual savings of $25 million (€23m) to $30 million.
A portion of these savings will be reinvested in the business although a substantial portion is expected to contribute to improving earnings. At the time the reorganisation was announced, IFF expected to incur approximately $90 million to $100 million in related costs. The company now anticipates total expected costs to reach $110 million.
Richard A. Goldstein, chairman and CEO of IFF, commented : "We have undertaken a number of initiatives in the past thirty months, including the acquisition and integration of Bush, Boake Allen, and the reorganisation of IFF.
The latest steps in our reorganisation could only be taken after completing the integration."
Based on preliminary results, the company expects reported sales for the first quarter 2003 to increase by 5-6 per cent, in comparison to the 2002 first quarter, excluding sales attributable to non-core businesses disposed of in June 2002.