1. Home
  2. / Economy
  3. / Pasta and biscuit manufacturer announces mass LAYOFF and lays off almost 500 employees
reading time 5 min read Comments 2 comments

Pasta and biscuit manufacturer announces mass LAYOFF and lays off almost 500 employees

Written by Alisson Ficher
Published 23/01/2025 às 21:51
M. Dias Branco closes factory in SP and lays off 480. Company seeks efficiency, but local community faces social impacts.
M. Dias Branco closes factory in SP and lays off 480. Company seeks efficiency, but local community faces social impacts.

The leader in pasta and biscuits, surprises by closing its factory and laying off 480 workers. The measure, part of a restructuring to reduce costs and improve efficiency, has a profound impact on the local community, generating uncertainty about the future of the workers and the region.

In an unexpected move that surprised the food sector and workers from the Lençóis Paulista region (SP), M. Dias Branco, the largest national manufacturer of pasta and biscuits, announced the closure of its biscuit factory in the city.

The immediate impact was the dismissal of 480 employees, generating concern among both workers and the local community.

The decision, confirmed last Monday (20), is part of a broader strategy by the company to optimize costs and increase operational efficiency.

According to an official statement from M. Dias Branco, production will be transferred to other units in the country.

This measure also aims to improve the agility in product delivery and reinforce the company's competitiveness in the market.

A giant of the Brazilian food industry

Founded in 1953, M. Dias Branco is a reference in the food sector, known for renowned brands such as Adria, Piraquê and Richester.

Currently, the company operates 22 factories or industrial complexes and has 29 distribution centers spread throughout Brazil, allowing its presence throughout the national territory and exports to more than 40 countries.

With a diversified portfolio, the company does not just produce pasta and biscuits.

Its products include flour, cake mixes, margarines, ready-made cakes, toast, peanut butter and chocolates.

Furthermore, in 2021, the company invested in the health food, sauces and condiments segment, further diversifying its operations.

This strategy reflects the continuous search for innovation and adaptation to the demands of the consumer market.

Social impacts and mitigating measures

The closure of the unit in Lençóis Paulista does not only represent a corporate strategy, but also a blow to the local community.

The 480 laid-off workers represent a significant loss of jobs in the region, which is expected to have economic and social consequences for many families.

According to information from Estadão and the newspaper O Globo, M. Dias Branco stated that it is committed to reducing the impacts caused by the restructuring.

After negotiations with the union, the company committed to offering professional training programs to help workers find new jobs in the job market.

Efforts include offering vocational training courses and partnerships with local companies, an attempt to minimize the immediate effects of the factory closure.

Still, the community faces challenges in terms of absorbing labor into other activities.

Growth and acquisitions

M. Dias Branco’s trajectory is marked by growth and important acquisitions.

In 2018, the company acquired the Piraquê brand for R$1,55 billion, strengthening its presence in market niches such as premium biscuits and regional products.

This investment allowed the company to expand its operations in strategic markets, diversifying its operations and consolidating its name among the largest food industries in Brazil.

This history of expansion highlights the company's strategy to consolidate its leadership in the Brazilian food sector and compete in international markets.

The transfer of production from Lençóis Paulista to other units is part of this operational optimization and adjustment plan, although it has generated significant impacts.

The relevance of Lençóis Paulista

Lençóis Paulista, known as “the city of books” for its literary tradition, also has a considerable dependence on large industries for economic development.

M. Dias Branco’s decision to close local operations reflects a common challenge in cities with economies concentrated in specific sectors.

The impact of the layoffs affects not only the workers directly linked to the factory, but also local businesses and services that depend on the purchasing power of these employees.

It is estimated that each industrial job generates another three indirect jobs, further increasing the scale of the social consequences.

The food sector in Brazil

Brazil is one of the largest food producers in the world, with industries that play a crucial role in generating jobs and exports.

Companies like M. Dias Branco face the challenge of balancing productive efficiency, technological innovation and social responsibility in a scenario of increasing global competitiveness.

According to industry experts, restructuring measures are common in large companies seeking to adapt to economic changes and market demands.

However, these strategies often raise the need for public policies that encourage economic diversification and the protection of workers in times of transition.

Affected community

Although the company is taking measures to reduce the impacts of the decision, the local community still faces a period of uncertainty.

The mass layoffs highlight the economic challenges faced by many cities dependent on large industries.

The restructuring of M. Dias Branco also raises questions about the importance of diversifying the local economy to minimize the effects of corporate decisions like this.

The city of Lençóis Paulista now finds itself faced with the need to seek solutions to encourage the creation of new jobs.

What to expect from the future?

M. Dias Branco continues to be one of the biggest powers in the food sector, but its restructuring movement reflects the challenges faced by large corporations in a scenario of increasing costs and high competitiveness.

Moving operations to other factories should allow the company to maintain its market leadership, but it also highlights the trade-offs between corporate efficiency and social impact.

As the company projects new horizons, the question remains: How can large industries balance operational efficiency and social responsibility without compromising their community foundations? Leave your opinion in the comments.

  • Reaction
2 people reacted to this.
React to article
Registration
Notify
guest
2 Comments
Older
Last Most voted
Feedbacks
View all comments
Paulo Cesar Fernandes
Paulo Cesar Fernandes
24/01/2025 21:29

Unfortunately, that's how it is. At the beginning, management comes up with that crazy story that "HERE IN THIS COMPANY WE ARE ONE BIG FAMILY." The employee actually puts on the shirt and then is given 3 shoes, two on his feet and one on his ass. I personally boycott this type of company that doesn't honor the "FAMILY"... I even do word-of-mouth advertising so that other people can do the same.

Maria
Maria
26/01/2025 23:51

I won't buy anything from this company anymore, if it depends on me it will go bankrupt.

Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines, stints on broadcast TV channels and over 12 online publications. Specialist in politics, jobs, economics, courses, among other topics. Professional registration: 0087134/SP. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

Share across apps
0
We would love your opinion on this subject, comment!x