Pernod Ricard SA on Oct. 1 said it expects to cut about 280 jobs under a restructuring plan that will involve the combination of its French distribution subsidiaries Ricard and Pernod.
Under the plan called Reconquer, the French spirits-maker will merge Ricard and Pernod into a single company to consolidate their distribution networks, effective July 1, 2020. The new entity will be called Pernod Ricard France and will be headquartered in Marseille.
"The goal of this project is to win back the French market and its consumers ... to recreate conditions for value growth in an increasingly competitive market undergoing accelerated change," the company said.
Pernod Ricard said it will carry out the layoffs through a voluntary redundancy program that offers support measures and noted that it is in talks with the unions of affected workers. The roles involve the sales and marketing departments hit by the merger, the distiller added.
Meanwhile, Pernod Ricard said it expects the restructuring initiative to create 90 jobs.
As part of Reconquer, the company is also proposing to sell its Café de Paris brand and Cubzac production facility to InVivo Wine, the wine segment of the French agricultural cooperative. The parties are in talks to establish a subcontracting agreement for the brands not sold to InVivo. Pernod Ricard noted that the Cubzac site's 29 employees will retain their jobs.
The plan is part of Pernod Ricard's broader restructuring project across all its markets globally, under which it aims to achieve several sustainability targets.
