70 Dairygold jobs to be lost as part of cost saving measures

North Cork-based company Dairygold has announced that 70 jobs are to be lost in the company as part of an optimisation programme.

The Irish dairy co-operative is to implement a three-year Business Optimisation Programme, targeting €14 million in cost savings to “enhance competitiveness”.

The Programme follows a comprehensive review initiated in November 2024 to identify measures to structure the business for optimum efficiency, cost competitiveness, margin enhancement and future growth – identified measures include manufacturing and operational efficiencies, organisational restructuring and the rationalisation of third-party expenditure.

The organisational restructuring envisages an additional headcount reduction of circa 70 positions, over the period, across the Dairy Ireland business, Agri Business and business support and management functions.

A spokesperson for the company told The Echo: “These will be achieved through a combination of natural attrition, redeployments and some voluntary redundancy.” 

They added that the company will now initiate a process of communication and consultation with employees and their representatives to enable effective delivery of the Programme.

Speaking about the Business Optimisation Programme, Dairygold Chief Executive, Michael Harte said: “Improving competitiveness and optimising our core business performance is fundamental to achieving our 2030 growth strategy.

“A period of significant labour, energy and materials price inflation together with interest rate changes have increased the cost base of the business.

“Meanwhile our milk forecasting confirms that milk production is stabilising at 1.4 billion litres. It is timely now that we take stock, review our structures, and right size our business and optimise our performance while maintaining the flexibility to manage fluctuations in milk production when necessary.” 

He added: “Our overall strategy continues to be guided by our everyday goal - to maximise Members’ income, by paying the strongest possible milk and grain prices and minimising input costs.

“Implementing the measures identified in the Review will improve our long term competitiveness and ensure that we continue delivering on that goal.”