The New York headquartered company is considering the closure of its fragrance manufacturing site in Drogheda, Ireland, threatening 101 out of the 105 jobs at the plant.

According to a report in the Irish Times, workers at the plant were put on a three day week last year. However, trade union Unite said the proposed job cuts were not expected.

In addition, a portion of its Haverhill plant in Suffolk, UK, may also be closed which would result in the loss of 50 jobs from the site which currently employs around 300 people.

In a statement the company said it will be providing a comprehensive support programme for affected staff, adding that the decision was not taken lightly.

“IFF deeply values its employees and the many contributions they have made to the Company’s success,” it said.

Second quarter profit badly hit

Recent results for the company suffered from a significant drop in sales, particularly in the fragrance arm of the business, and net income for the recent quarter dropped 28 per cent from $67m to $48m.

Within the fragrance sector, fine and beauty care sales were the worst hit, with sales for the quarter dropping 23 per cent. The company put this down to a contraction in the supply chain and significant declines in retail.

Company CEO Robert M. Amen said the company was making progress to grow market share, improve margins and reduce working capital but recognized that much remained to be done.