Dairy Giant Cuts Salaries and Anticipates Mass Layoffs

Argentina 11.08.2025

Sourse: dairynews.today

A major Argentine dairy company faces financial crisis, prompting salary cuts and potential layoffs amid efforts for restructuring.

Dairy Giant Cuts Salaries and Anticipates Mass Layoffs

The Argentine dairy sector is on high alert due to the severe crisis facing the company Lácteos Verónica, a major player in the industry. The company has defaulted on employee salary payments and has requested a Preventive Crisis Procedure (PPC) from the authorities, which would allow them to lay off 210 people and suspend another 200. This situation has sparked profound concern in the market and among workers, who have responded with protests and workday reductions.

According to the article, the company's situation is critical. Not only has it failed to pay July's salaries and bonuses, but it also carries significant debts with its suppliers. This year, Lácteos Verónica has issued thousands of bounced checks, accumulating a debt of over 7.545 billion pesos. These alarming figures highlight an economic crisis that the company attributes to the decline in dairy consumption and rising operational costs.

However, the company's arguments are being questioned. The Government, through the Labor Department, has rejected the company's PPC request, demanding stronger evidence to justify the measure. Distrust has deepened with accusations of "induced crisis" by employees and officials, suggesting potential asset transfers to a linked company owned by the same family.

The outcome of this crisis will have significant implications for the entire dairy industry. The situation at Verónica not only threatens the stability of hundreds of families but also highlights the broader economic challenges facing the sector, from market volatility to cost management. The resolution of this conflict will be a barometer for the health of the Argentine dairy industry and the future of its companies.