Verallia Announces 360 Job Cuts as European Glass Demand Falls

Verallia, a major glass packaging producer and former subsidiary of Saint-Gobain, announced plans to cut around 360 jobs due to declining demand in Europe. The company said it intends to close its Essen site in Germany, which would result in the loss of about 300 positions. In France, Verallia plans to shut down an aging furnace at its Châteaubernard facility in Charente, affecting approximately 60 jobs. The company stated that these job cuts in France would be managed exclusively through voluntary departures, supported by early retirement options and dedicated assistance measures.

The reduction in workforce comes as Verallia faces a drop in glass container volumes, which the company attributes to a 4% decrease in alcohol consumption across Europe since 2019. This trend is compounded by increased pressure on export flows for its clients, particularly shipments to the United States and Asia. Verallia employs nearly 11,000 people across 35 glass plants in 12 countries.

In the United Kingdom, Verallia also plans changes to its industrial operations. The company will stop using an old furnace at Knottingley and start up a more efficient one at Leeds. While no specific job numbers were given for the UK, Verallia said it is considering options to redeploy staff between the two sites, which are located near each other.

Verallia describes itself as the leading glass packaging producer in Europe and the third largest worldwide. The company reported that after several years of annual growth of about 2% in glass bottle and jar volumes up to 2020, the market experienced slowdowns during the Covid-19 pandemic, followed by a brief recovery and then a sharp decline of about 13% in 2023. This has left demand structurally lower than pre-pandemic levels.

The company is set to release its annual results for 2025 on February 24. In October, Verallia lowered its profitability targets for 2025 after a weaker-than-expected third quarter amid challenging market conditions. In 2024, Verallia produced 16 billion bottles and jars and generated €3.5 billion in revenue.