Jakarta, Armfalcon.com —
Tupperware plans to terminate employmentlayoffs) to its employees. The cut in the workforce is inseparable from the financial condition company which got worse.
Not only that, the company’s shares have also fallen 90 percent in the past year.
To quote CNN BusinessTuesday (11/4), because of this condition, the company that markets plastic products for household needs needs additional funds to survive.
One of the additional funds can be obtained from reducing the number of employees.
Tupperware CEO Miguel Fernandez said in addition to cutting employees, the company is reviewing its real estate portfolio for potential cash savings.
“The company is doing everything in its power to mitigate the impact of recent events, and we are taking immediate action to seek additional financing and address our financial position,” said Miguel Fernandez.
This business, which has been running for 77 years, is being tested with the demands of the times. Tupperware has been trying to shed its sober image and start attracting a younger customer with newer, trendier products.
Retail Analyst and Managing Director of GlobalData Retail Neil Saunders said there have been a number of issues that have been hurting Tupperware lately. Such as declining sales and products that tend to be ‘old-fashioned’.
“Several issues are hurting Tupperware, including a sharp decline in the number of sellers, a decline in consumers’ pursuit of household products, and the brand still not fully connecting with younger consumers,” he said.
Saunders said Tupperware was in a precarious position financially as it struggled to increase sales. On the other hand, company assets also tend to be small, so companies don’t have much capacity to raise money.
“This company used to be a hotbed of innovation with problem-solving kitchen gadgets, but now it’s really lost its edge,” he says.