Verallia is to cut 130 jobs as part of a transformation plan in France.
The redundancies will take place across its six French plants with 80 planned at its Cognac site.
There has been a decline in the still wine market in France in terms of domestic wine consumption and exports, which has particularly affected the organisation.
At the same time, the domestic glass market has experienced an increase in imports from more competitive glassmakers operating in neighbouring countries.
These now account for 33% of the French domestic market. With imports growing faster than the domestic market, Verallia France has overcapacity in certain market segments.
Verallia's transformation plan aims to respond to these various challenges by adjusting its production capacity in France and improving its industrial performance.
This project corresponds to the non-reconstruction of one of the three furnaces at the Cognac site.
This furnace is coming to the end of its service life at the end of the year and mainly produces bottles for the wine market.
This project should be accompanied by the deployment of new industrial organisations already established in the group’s other European countries.
Its implementation in conjunction with the personnel of Verallia France’s six glassmaking sites will include a number of measures related to health and safety at work (new equipment to improve working conditions and reduce arduousness, end-of-career arrangements and transition from work to retirement).
The transformation plan should also include measures to accompany departure in the form of early retirement and a voluntary redundancy plan.
Verallia said it would also propose adapted support and measures to facilitate access to internal redeployment, or help employees search for new professional opportunities such as vocational training, assistance in setting up a business, assistance in finding external redeployment.
In an ongoing concern to maintain open and transparent social dialogue, the will start an information-consultation procedure with employee representative bodies on June 22, 2020.
The company is the world’s third largest glass container manufacturer and has a strong presence in the still and sparkling wine segment. It is also a major player in the spirits, non-alcoholic beverages and food markets. It operates 14 furnaces in France and employs 2500 people.