International Flavors & Fragrances Inc. said Tuesday it will eliminate 300 jobs, or 6 percent of its work force, mainly in its European and North American operations. The New York-based maker of fragrances and aromas said in a regulatory filing that it expects the job cuts to lower earnings before taxes by $25 million (Ђ20.7 million) to $30 million (Ђ24.9 million). The charge will be recorded mostly in the fourth quarter ended Dec. 31, the Securities and Exchange Commission filing said.
The rest of the charges, mainly for employee severance packages, will be recorded during the first half of 2006, International Flavors said. Chairman and Chief Executive Richard A. Goldstein said the job cuts are part of an ongoing effort "to maintain and improve IFF's profitability." The positions to be cut will be in the company's manufacturing, selling, research and administration divisions, the filing said. A company release did not make public the locations where the cuts will be made.
International Flavors also said that 2005 sales fell 2 percent from the previous year. International Flavors, which had fiscal 2004 revenue of $2.03 billion (Ђ1.7 billion), is expected to announce fourth-quarter and full-year financial results Jan. 25, reports the AP. N.U.