{
    "success": true,
    "data": {
        "id": 1139581,
        "msgid": "indofood-to-lay-off-more-workers-1447893297",
        "date": "2005-12-15 00:00:00",
        "title": "Indofood to lay off more workers",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Indofood to lay off more workers The Jakarta Post, Jakarta Aiming to boost efficiency, the world's largest instant noodle maker, PT Indofood Sukses Makmur, has dismissed thousands of workers and plans to keep on doing so until at least 3,500 workers have been laid off by the end of the year. \"As of September, we had laid off 2,900 workers who were mostly nearing retirement age.",
        "content": "<p>Indofood to lay off more workers<\/p>\n<p>The Jakarta Post, Jakarta<\/p>\n<p>Aiming to boost efficiency, the world's largest instant noodle<br>\nmaker, PT Indofood Sukses Makmur, has dismissed thousands of<br>\nworkers and plans to keep on doing so until at least 3,500<br>\nworkers have been laid off by the end of the year.<\/p>\n<p>\"As of September, we had laid off 2,900 workers who were<br>\nmostly nearing retirement age. It is mainly for efficiency<br>\nreasons,\" Indofood vice president director Franciscus Welirang<br>\nsaid during a company briefing on Wednesday.<\/p>\n<p>The company had around 50,000 workers at the beginning of 2005<br>\nand planned to downsize this figure to between 46,000 and 46,500<br>\nby the end of the year.<\/p>\n<p>The company has allocated Rp 130 billion (some US$13 million)<br>\nin severance pay and is hoping that this will save the company<br>\nbetween Rp 80 billion and Rp 100 billion per annum in the years<br>\nto come.<\/p>\n<p>It said that it would automate the packaging process, and also<br>\noperate three shifts a day to optimize the utilization of the<br>\ncompany's production capacity.<\/p>\n<p>Despite the massive layoffs, Franciscus said that the company<br>\nwas also recruiting new employees for its oil palm plantations<br>\nand newly acquired shipping firm.<\/p>\n<p>Earlier this year, Indofood bought convertible bonds issued by<br>\nshipping firm PT Pelayaran Tahta Bahtera.<\/p>\n<p>An Indofood director, Cesar M. dela Cruz, said the company<br>\nwould expand its current 97,000 hectares of oil palm plantations<br>\nto up to 300,000 hectares over the next 10 years.<\/p>\n<p>\"But, it is also possible that we might do it within a year,\"<br>\nhe added, without elaborating.<\/p>\n<p>Its current plantations supply 315,000 tons of crude palm oil<br>\n(CPO) per annum, or around 50 percent of the company's demand for<br>\nvegetable oil.<\/p>\n<p>In the first nine months of the year, Indofood's net profit<br>\ndropped to Rp 42.2 billion from Rp 288.6 billion as of September<br>\nlast year.<\/p>\n<p>\"This was due to one-time charges and loans amounting to Rp<br>\n217.3 billion,\" Franciscus said, adding that losses arising from<br>\nthe sale of foreign exchange hedging contracts also contributed<br>\nto the drop.<\/p>\n<p>Indofood has targeted an increase in its market share for<br>\nconsumer products -- mainly instant noodles -- to up to 75<br>\npercent by the end of this year from slightly over 70 percent<br>\ncurrently.<\/p>\n<p>\"Market share is expected to reach 78 percent next year,\" dela<br>\nCruz added.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/indofood-to-lay-off-more-workers-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}