Nestlé plans to cut as many as 400 jobs in France as it aims to boost efficiency and reduce costs as it comes under increasing pressure to streamline its portfolio.
A spokesperson said that the company will offer employees affected retraining to switch to other positions and accept voluntary departures. In total, the company employs 13,000 people in France.
Last year, Nestlé announced plans to move seven sites in Paris to one facility by 2020 and the latest cuts mainly affect employees in support services.
The move follows a decision to transfer the Nestlé Chocolate Centre of Excellence in Switzerland to the UK as the company aims to “improve the speed and agility of global innovation”.
In May, the facility will move to the company’s Product Technology Centre in York, with Nestlé saying it will ensure that all 25 employees will keep a job.
Earlier this month, Nestlé sold US its confectionery unit – which includes brands such as Butterfinger and Nerds – to Ferrero for $2.8 billion.
Dan Loeb, whose hedge fund Third Point acquired a 1.3% stake in Nestlé last year for $3.5 billion, has increased pressure to offload what he calls “ill-fitting businesses”. He wants it to shift towards health and wellness, with a heightened focus on categories such as coffee, water and nutrition, rather than products such as frozen pizza and ice cream.
Loeb reiterated his support for new CEO Dr Mark Scheinder, but stated: “We hope now that Schneider has completed his first year and there is new blood on the board, the company is able to move with greater alacrity.”
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