Saputo Inc, the Canadian dairy and cheese company, announced that it is closing down two facilities in order to increase “operational efficiency.”
The facility in Trenton, Ontario will be closing in Sept. 2020, and the one in Saint John, New Brunswick will be closing next year in Jan. 2021. Saputo said that the closures will affect about 280 employees, some of those will have an opportunity to transfer to other Saputo locations within its Dairy Division.
“Over recent years, Saputo has maintained efforts to pursue additional efficiencies and decrease costs while strengthening its market presence. This decision is part of the company’s continual analysis of its overall activities,” the company said in a statement.
The company added that its other facilities in Canada will take on the production lost from the closures.
The news comes after Saputo released its financial results for the third quarter of the 2020 fiscal year. The company’s revenues increased by 8.8 per cent from $3.58 billion last year to $3.89 billion this year. However their net earnings went down by 42.2 per cent, from $342 million last year to $197.8 million this year.