Type
Internal restructuring
Country
Italy
Region
Nord Ovest; Lombardia; Milano
Location of affected unit(s)
Robecco sul Naviglio
Sector
Manufacturing
Manufacture Of Computer, Electrical Electronic And Optical Products
Manufacture Of Electrical Equipment
27 - Manufacture of electrical equipment

104 jobs
Number of planned job losses
Job loss
Announcement Date
21 March 2007
Employment effect (start)
2 April 2007
Foreseen end date

Description

Gaggia is one of the most important Italian manufacturers of coffee machines for professional and household use. It was set up in 1947 by Achille Gaggia, who, in 1938, patented the modern steam-free coffee with cream machine (the so-called "moka" coffee machine).

Gaggia is currently owned by Saeco, one of the world leaders in the production of coffee machines for household and professional use.

On 21 March 2007, Gaggia announced a reorganisation plan that envisages the closure of the production division in Robecco sul Naviglio, with the consequent loss of 104 jobs. The company’s decision was mainly due to a significant drop in market demand. The low-cost electrical coffee machines, mainly produced in China, are currently in higher demand than the Gaggia coffee machines.

The trade unions reacted to the company’s decision by taking several forms of industrial action and demanding the involvement of the local authorities in order to find ways to avoid the redundancies envisaged by the reorganisation plan.


Sources

  • 22 March 2007: La Repubblica

Citation

Eurofound (2007), Gaggia, Internal restructuring in Italy, factsheet number 65145, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/65145.