STUTTGART, Germany: German chocolate maker, Ritter Sport, known for its trademark square bars, plans to cut jobs for the first time in the company’s 110-year history after posting a disappointing result last year, a spokesman said on Thursday, reported German Press Agency (dpa).
The cuts are expected to affect the company’s headquarters near Stuttgart, with about one in ten positions to be eliminated, the spokesman said.
Surging raw material costs, particularly for cocoa, as well as energy and packaging expenses, have weighed on the business.
The company has also seen a significant pullback in consumer demand, the spokesman added.
Ritter Sport, which employs some 1,900 people worldwide, had previously announced plans to streamline its cost structure.
Some 1,000 people work at the headquarters in the town of Waldenbuch, including a little over 600 in administration, according to the spokesman.
Under the plans, about 70 administrative positions are to be cut.
Despite a rise in sales, Ritter Sport slipped into the red in 2025, with operating profit falling well short of expectations.
The loss was attributed primarily to a sharp rise in raw material costs, though Ritter Sport did not provide specific figures.
Last year, revenue climbed by some 17.7 per cent to €712 million (USD835 million), up from €605 million (USD710 million) in 2024, Ritter Sport said in a statement in January, citing preliminary and currency-adjusted figures.
However, the increase was not enough to offset the “massive cost rises” across the entire value chain, according to the company.
Instead, it was the result of the company raising the prices of its chocolate bars, which helped boost turnover despite declining sales volumes. – BERNAMA-dpa
