IFF Announces Job Cuts, Sales Decline

International Flavors and Fragrances (IFF) has announced its plan to eliminate approximately 300 positions in manufacturing, selling, research and administration functions, principally in its European and North American operating regions. The cuts represent 6% of the company’s workforce. As a result of these actions, IFF anticipates recording pre-tax restructuring charges of $25-30 million, the majority of which will be recognized in the fourth quarter 2005.

“We are continually striving to ensure IFF’s creative facilities and global operating network are as efficient as possible and fully aligned with our customers’ needs and expectations,” said Richard Goldstein, chairman and CEO, IFF. “IFF has many hardworking and dedicated employees, which made this decision difficult. However, these actions are a necessary part of our ongoing efforts to maintain and improve IFF’s profitability in the economic environment in which we operate.”

IFF also announced that full year 2005 sales declined 2% percent in comparison to 2004 in reported dollars. Sales in 2005 were impacted by the disposition of the company’s European fruit preparations business.

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