The world’s largest packaged food company, Nestle, has announced plans to reduce its workforce by 16,000 jobs over the next two years. This decision is part of the company’s efforts to automate processes and enhance operational efficiency.
The job cuts will mainly affect white-collar and professional positions within the company, with 12,000 roles being eliminated. Additionally, around 4,000 jobs in manufacturing and the supply chain will also be cut, according to Nestle.
Nestle, known for brands like Nescafe, Cheerios, KitKat, and Rolo, stated that there will be a consultation process for the affected roles. The impact on Nestle’s British workforce was not specified in the initial announcement, with a spokesperson mentioning that concrete figures for individual markets are not currently available.
The company’s market update indicated that the job reductions will be across various functions and geographies. Nestle operates factories, distribution centers, and offices across England, Scotland, and Wales, employing approximately 7,500 people in the UK and a total of 277,000 globally.
The GMB union, which represents about 2,000 Nestle employees in Britain, criticized the job losses as a betrayal of the company’s hard-working staff. They expressed disappointment in Nestle’s focus on profitability over mitigating losses, especially considering the company’s significant profits.
Nestle’s new CEO, Philipp Navratil, emphasized that the staff reductions will be carried out with respect and transparency, describing the decisions as «hard but necessary.» Navratil, who took over in September following the departure of his predecessor, highlighted the company’s commitment to prioritizing opportunities with the highest potential returns.
The confectionery market, where Nestle operates, has been facing challenges due to elevated cocoa prices and the impact of climate change on harvests. These factors have contributed to tighter margins in European markets, where the company has been experiencing difficulties.
In conclusion, Nestle’s restructuring efforts are aimed at streamlining operations, improving efficiency, and refocusing resources on areas with the greatest growth potential. Despite the challenges faced by the sweets market, Nestle remains committed to adapting to changing market conditions and maintaining its position as a leader in the packaged food industry.
SOURCE