Turk Tuborg, the Turkish subsidiary of the Danish beer producer, has announced it is to axe 10% of its workforce, in an attempt to move the oss-making business towards profit.

Turk Tuborg recently replaced its CEO following a consistent period of underperformance. The company said yesterday that in particular it had overspent in marketing.

The economics of the market have not helped, with Turkey experiencing a deep recession and heavy inflation. However, forecasts are for an improvement with inflation in Turkey is expected to fall to 24.8% by the end of 2003 while its gross national product (GDP) is predicted to rise by 4.4% this year.
 
That said, a war in Iraq could destablise any recovery.

"We are cutting the staff from 1,400 people to 1,250 because we need a better balance between costs and income," said Carlsberg information manager Margerethe Skov.

Sales in Turk Tuborg account for about 2% of Carlsberg's total sales.