1 Jul 2010

Fiji Sugar Corporation to cut over 1,000 jobs

10:35 am on 1 July 2010

The Fiji Sugar Corporation has embarked on a major cost-cutting exercise which will result in at least 1000 workers being laid off over the next 18 months.

Its CEO, Deo Saran, says the measures are necessary because of the company's tight financial situation, caused by declining European Union sugar prices in 2009 and a delay in the mill upgrade program.

Mr Saran told the Fiji Times that this resulted in an operating loss of over 15 million US dollars.

He says a reduced operating budget and cutting the workforce are just some of the measures being undertaken.

Deo Sara says the budget provides for a reduction of 8.15 million US dollars.

He says to achieve this level of cost reduction, it is imperative that crushing operations run smoothly.

He says interrupted crushing operations, regardless of their cause, whether breakdown in mill or inadequate supply, will have repercussions on expenditure levels.