Campari aims for financial recovery through workforce reduction and restructuring

Published 20/02/2025, 14:12
© Reuters.

Investing.com -- Italian spirits company Davide Campari (LON:0ROY), under the leadership of its new CEO Simon Hunt, announced on Thursday that it is taking "tough decisions, such as organizational restructuring" to facilitate the group’s return to financial stability.

According to a report by Italian daily MF, the group is planning to reduce its workforce by approximately 10%, which equates to about 500 employees. In response to these reports, Campari issued a statement explaining the need for more efficient resource allocation. Changes in the company’s top-line performance and existing infrastructure investments have impacted profitability, thus necessitating this action.

The company stated, "We are gradually implementing a comprehensive set of company initiatives to accelerate growth and profitability via focus, simplification and cost containment". The process is described as "wide and ongoing", with no specific global number available yet for those who will be affected.

Campari’s shares saw a 2% increase at 1145 GMT on Thursday. Simon Hunt, who took over as CEO in January, replaced Matteo Fantacchiotti, who resigned in September after only five months in the role.

The company reported an 18.2% decrease in third-quarter operating profit and noted that its fourth-quarter results would likely be affected by lower production volume and an unfavorable sales mix. The company’s full year results are expected to be released next month.

In the third quarter, Campari stated that streamlining its product portfolio and reducing costs would contribute to a gradual return in the medium term to a mid-to-high single digit organic net sales growth.

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