Belgium-based fruit and vegetable canning company Greenyard is planning to cut 422 jobs as part of its transformation plan to close or divest its Baja frozen plant in Hungary.

The plan is expected to impact workers employed across different countries, especially in the UK and Germany, subject to the applicable information and consultation procedures.

Greenyard’s transformation plan includes immediate, short and long-term actions, both at the group and divisional level, that will enable the company to accelerate the shift of its organisation to a partnership model.

The company noted that the move is in response to continuing market pressure and will address the challenges it has been facing.

"By driving a stringent execution of the Transformation Plan, we can unlock a large untapped potential that will significantly improve our efficiency and profitability."

Greenyard co-CEO Hein Deprez said: “This year’s extremely dry summer, the recall action beginning of the summer, but in particular, the continuing market pressure has called for important decisions.

“After years of growing Greenyard, it is time to consolidate and to use our strength and scale to become an even closer partner to our customers. We want to remain the retail’s strong and efficient partner, even stronger than today. A partner that is ready for the long term, together with its customer. Today, we are already making strong progress on these initiatives.

“This also implies a transformation of the organisation. We believe that these measures are needed for a healthier future for Greenyard, its employees, its customers, its suppliers and its shareholders.”

The company expects that its plan will enable it to accelerate the shift of its organisation to a partnership model, with Greenyard as a vertically integrated partner for the retailers.

Additionally, the company is exploring options to divest its Prepared division.

Greenyard co-CEO said Marc Zwaaneveld said: “We believe Greenyard has a bright future. By driving a stringent execution of the Transformation Plan, we can unlock a large untapped potential that will significantly improve our efficiency and profitability.

“In addition, our analysis for a refocused footprint overall divisions will ensure that we continue to guarantee our customers the service levels they are used to, whilst optimising Greenyard by divesting those assets that are no longer essential and weigh on our cost structure.”

In September last year, Greenyard signed an agreement to sell its horticulture business segment to independent Belgian investment group Straco for a total consideration of €120m ($141m).