Chocolate maker Ritter Sport to cut jobs for first time in 110 years

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.

The cuts are to affect the company's headquarters near Stuttgart, with about every 10th position to be cut, the spokesman told dpa upon request.

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, he said.

Ritter Sport, which employs some 1,900 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, some 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% to €712 million, up from €605 million in 2024, Ritter Sport said in a statement in January, citing preliminary and currency-adjusted figures.

However, the jump 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 increasing prices of its chocolate bar, which helped to boost turnover despite dwindling sales volumes.

Cocoa prices have gone up significantly over the past years, amid fears of crop failures in West Africa caused by plant diseases and extreme weather, leading manufacturers and retailers to pass on the increased raw material costs to customers.

In Germany, the price for a bar of chocolate in March was up by 71% on average on 2020.

Thanks to a better harvest, cocoa market prices have fallen sharply again recently, leading some chocolate makers to lower prices.