Orior Announces Major Restructuring, Cutting Nearly 100 Jobs in Switzerland
Zurich, Switzerland – Swiss food company Orior is implementing a considerable restructuring plan, resulting in the elimination of approximately 90 positions, primarily at its Albert Spiess subsidiary in Graubünden. The move is part of a broader effort to reduce debt and improve the company’s financial performance amid challenging market conditions.
Key Restructuring Details
The restructuring focuses heavily on Albert Spiess, a dry meat producer. Orior plans to consolidate production of all non-regional products to its Rapelli facility in Stabio, Switzerland, within the next year. This will considerably downsize operations at the Schiers location, reducing it to a minimal capacity, and lead to the closure of the retail shop in Landquart.
Approximately 90 of the 130 employees at the Schiers facility will be affected by the reorganization, and the company is developing a social plan to support those impacted. Albert Spiess and Rapelli will be legally merged into a single entity.The decision comes after years of declining profitability for Albert Spiess,exacerbated by rising raw material costs and,as reported last year,Latin American economic corrections.
Did You Know? Orior acquired Albert Spiess in 2012, aiming to expand its presence in the dried meats market. Though,the brand has faced increasing challenges in recent years.
Strategic Expansion Alongside Cuts
While streamlining operations at Albert Spiess, Orior intends to invest in growth areas. The company plans to expand its Gesa and casualfood businesses, and will strengthen its stake in Gaetarelli, an Italian pasta specialist. Administrative and organizational structures will also be streamlined across the group.
The future of Culinor Food Group,a Belgian subsidiary acquired in 2016,is under review,with all options - including a potential sale - being considered,as anticipated synergies have not materialized.
Financial Performance and Outlook
Orior’s first-half results for 2025 revealed a decline in sales, falling 2.9% to CHF 305 million. The EBITDA margin decreased from 7.3% to 5.4%. These results were negatively impacted by prior-year contamination issues, write-downs, and elevated raw material prices. However, free cash flow improved to CHF 10.7 million, up from -13.2 million in the previous year, and net debt decreased to CHF 173.3 million.
The company now forecasts a sales decline of 2-4% for the full year (previously -4 to -6%). The projected EBITDA margin is 5.9-6.3% (previously 6.0-6.4%). Delays in opening new airport outlets and costs associated with the albert Spiess relocation have contributed to these revised expectations.Despite these short-term challenges, Orior believes the restructuring will ultimately enhance growth, profitability, and resilience.
Pro Tip: Understanding a company’s debt reduction strategy is crucial for assessing its long-term viability, especially in volatile economic climates.
| Metric | 2024 (Previous Year) | 2025 (Current) |
|---|---|---|
| Sales (CHF million) | 313.8 | 305.0 |
| EBITDA Margin (%) | 7.3 | 5.4 |
| Free Cash Flow (CHF million) | -13.2 | 10.7 |
| Net Debt (CHF million) | 185.6 | 173.3 |
What impact will these changes have on the local economy in Graubünden? And how will Orior’s strategic shift affect its competitive position in the broader food industry?
Context and Industry Trends
The food industry is currently facing significant headwinds, including rising inflation, supply chain disruptions, and changing consumer preferences. According to a report by the Food and Agriculture Institution of the United Nations (FAO),global food prices have been volatile in recent years,impacting food companies’ profitability [FAO Food Price Index]. Restructuring efforts, like those undertaken by Orior, are becoming increasingly common as companies seek to adapt to these challenges and maintain competitiveness. The trend towards consolidation within the food industry,driven by the need for economies of scale and increased efficiency,is also a key factor influencing these decisions.
Frequently asked Questions
- What is Orior restructuring? Orior is undergoing a significant restructuring to reduce debt and improve profitability, involving job cuts and production consolidation.
- how many jobs are affected by the restructuring? Approximately 90 jobs are being eliminated,primarily at the Albert Spiess facility in Graubünden.
- What is happening to the Albert Spiess brand? Production is being moved to the Rapelli facility, and the Schiers location will be significantly downsized.
- What is Orior’s financial outlook? The company forecasts a sales decline of 2-4% for the full year, but expects the restructuring to improve long-term performance.
- What is the impact of raw material prices on Orior? Rising raw material costs have contributed to the challenges faced by Albert Spiess and have negatively impacted Orior’s overall profitability.
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