JAKARTA (Dow Jones)--Indonesian food producer PT Indofood Sukses Makmur (INDF.JK) Wednesday said it has laid off 2,900 workers in the year to end-October in an effort to make the company more efficient. "We plan to continue to lay off another 600 workers by the end of this year to improve efficiency," Indofood's Vice President Franky Welirang told reporters.
After the layoffs, Indofood's workforce will total 46,500.
The world's largest instant noodle maker by volume has spent IDR130 billion on compensation for laid-off workers to date.
"The layoffs, however, will save us up to IDR100 billion on salaries a year," said another Indofood Vice President, Cesar Dela Cruz.
Analysts said Indofood needs to streamline its workforce in order to maintain growth and increase its falling share of the noodle market.
Indofood currently has a 73% share of the national noodle market, down from around 90% in early 2000, due to stiffer competition.
Dela Cruz expects market share to increase to above 75% next year as the company plans to introduce new products.
Indofood, which is 51.5% owned by First Pacific Co. Ltd. (0142.HK), sells around 10 billion instant noodle packages every year.
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