Spanish baker Panrico has reduced the number of jobs it plans to stem losses and revitalise the business – although over 800 posts are still set to face the axe.

Panrico, has run up EUR700m (US$950.8m) of losses in the last four years, has put to unions a revised proposal to shed 875 jobs from the business.

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The company had been looking to axe 1,900 jobs but, during talks with unions, has scaled back the plans, just-food understands.

Panrico has also been looking to cut salary costs by a third but these plans have also reportedly been reassessed, with a fresh proposal to lower wages by 26%. According to reports in Spain, union negotiators have dismissed the new offer on pay.

Talks have been held with the CCOO and UGT unions as a strike at one of Panrico’s five plants continues.

Industrial action at the Santa Perpctua de Mogoda factory in Barcelona started on 13 October – and was continuing today (31 October).

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The strike started in reaction to Panrico’s move last month to suspend the pay of over 4,000 staff as part of plans to stave off possible bankruptcy. Panrico resumed paying workers earlier this month.

Panrico is looking at making changes to its production network but it is unclear whether any plans will be closed.

Industry watchers believe Panrico has suffered as Spanish consumers, hit by the economic crisis in the country, have sought cheaper products. Own label has made inroads into the categories in which the Donettes and Qe! brand owner operates. Market experts also argue Panrico has not reacted quickly enough to these tougher trading conditions.

Officials at the CCOO and UGT unions could not be reached for immediate comment.