Brazilian food processor BRF SA is cutting 25% of director positions as part of a restructuring that comes on the heels of a massive first-quarter loss, according to a source familiar with the matter who was not authorized to discuss the decision publicly.
Without going into the specifics of the move, which was first reported by newspaper Valor Economico, BRF confirmed in a statement sent to Reuters “it has updated its organizational structure.”
BRF said the strategy is “taking into account the opportunities for simplification, agility and synergies arising from the maturity of its internal processes.”
The company, which lost 1.5 billion reais ($315.23 million) in the first quarter of the year,, said “it remains focused on strengthening the areas of activity with the greatest potential for growth and profitability.”
The source said other measures would be announced by the management of BRF as part of an ongoing plan to simplify the corporate structure and improve the balance sheet, but could not elaborate. ($1 = 4.7584 reais) (Reporting by Ana Mano; Editing by Leslie Adler, Bernard Orr)